The document discusses the concept of 'premium' in options trading, explaining that it is the price paid by the holder and received by the writer for the rights conveyed by the option. It is not a standardized term and is subject to market and economic forces. Various factors affecting the pricing of an option are listed, including market conditions, interest rates, and volatility.
doj/DataSet10/EFTA01393102.pdf
{"document_type":"other","key_organizations":["OCC"]}