FINANCE,STOCK MARKETthepricefor anoption(= therighttobuyshares, etc. at aparticularprice)(Definition ofoption premiumfrom theCambridge Business English Dictionary? Cambridge University Press)
Examplesofoption premium
option premiumIf the buyer fails to exercise the options, then the writer keeps theoptionpremiumas a gift for playing the game.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.If the option buyer doesn't exercise on or before expiration, the seller keeps theoptionpremium.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.Higher volatility increases theoptionpremiumbecause of greater risk it brings to the seller.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.In all cases, any (non-recoverable) upfront expenditure related to this flexibility is theoptionpremium.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.He receives anoptionpremiumof 14.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.A project with the option to expand will cost more to establish, the excess being theoptionpremium, but is worth more than the same without the possibility of expansion.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.The call strike is normally chosen in such a way that the sum total of the three option premiums are equal to zero.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.Option premiums are typically non-refundable.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.Furthermore we would draw your attention to the difference in size of the option premiums.From theCambridge English CorpusWe interpret the magnitude of the option premiums as a criterion to evaluate the sustainability of the scheme.From theCambridge English CorpusThese examples are from corpora and from sources on the web. Any opinions in the examples do not represent the opinion of the Cambridge Dictionary editors or of Cambridge University Press or its licensors.#https://dictionary.cambridge.org//dictionary/english/option-premium##
