Definition of option premium

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Net Option Premium Definition Trading Glossary FinancialTrading.

(2) In speaking of price relationships between different delivery months of a given commodity, one is said to be "trading at a premium" over another when its price is greater than that of the other.

Income Tax Definition Investopedia

A graphical representation of the projected price of an option at a fixed point in time.

What is <strong>Option</strong> <strong>Premium</strong>? <strong>definition</strong> and meaning

Extrinsic Value and Intrinsic Value Options Trading - Dough

Option Premium The Option Premium is the price paid by a buyer of an Option. May result in cash inflow or outflow depending on the difference in prices in the two transactions. It is equal to how deep ITM (in the money) the strike of the option is. The premium is the price of the option and is paid by the buyer to the writer, or seller, of the option. The income received by an investor who sells or "writes" an option contract to another party. In the mortgage pipeline, an additional hedge placed in tandem with the forward or substitute sale. In the case of options traded on debt instruments, the aggregate exercise price is the exercise price of the underlying security multiplied by its face value. The value of the option is 14¢, so this is the premium margin.

What is Option Premium? definition and meaning

The strike price may be set by reference to the spot price (market price) of the underlying security or commodity on the day an option is taken out, or it may be fixed at a discount or at a premium.


Definition of option premium:

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