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  2. Share Prices
  3. Finance Glossary
  4. Terms Beginning With O
  5. Option Premium

Option Premium

Definition of 'Option Premium'

The amount paid by an option purchaser (holder) to obtain the rights under an option contract.

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Related Terms

Zero Cost OptionAbandoned OptionAccrued Rights Premium (ARP)PremiumPremiumsCall OptionIn-the-Money OptionReal OptionTraditional OptionAmerican Style OptionCurrency WarrantExpiry Date of an OptionIndex OptionLTOMOut-of-the-Money OptionPutStrike PriceWriter of an OptionActuaryBid Premium

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