Option Premium

The Option Premium is the price paid by a buyer of an Option. The Option Premium depends on a number of things such as the current price of the underlying asset, how long until the option expiry date and so on, and so will vary as the option moves towards it's expiry date.

Many option writers use the Black-Scholes Model of calculating the Option Premium.

What to do if you need more help

If you need more help with your specific commercial loan, mortgage or insurance requirement please speak to a professional financial adviser.

We hope you found this information useful.

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