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You asked: what is option premium

Premium

What an option costs — paid by the holder to the writer at the start and never returned. It splits into intrinsic value, which is what exercising now would be worth, and time value, which is everything above that and is the whole price of an out-of-the-money contract.

Mayawhat these words mean

Maya reads the desk’s written explainers and the glossary. She holds no market data at all, so she can say what a thing is and cannot say what it is doing today.