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 fluctuations. Various factors affecting the pricing of an option are outlined, including market conditions, interest rates, and volatility.
documents/vol00010-efta01353410-pdf.pdf
{"document_type":"other","key_organizations":["OCC"],"reference_numbers":["SDNY_GM_00183956","EFTA01353410"]}