Option Premium

Definition

Option Premium. The amount paid for an option.

Notes

(Equity Options): This is just the price. not specific to Equities Options. See Pricing for Exchange Traded Derivatives where we already have similar terms. In forward Fx, premium relates to whether or not the price of the forward is greater or less than the price of the PSpo. In Bonds, whether or not the capital price is more or less than Face Value (see Bonds Pricing model). In THIS context: the money you pay for the option.

FpML: A type used to describe the amount paid for an equity option.

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.