Option Premium

This term has two possible interpretations.

The first, and more widely used, is that option premium is the same thing as option price and has two components: intrinsic value and time value.

The second, less widely used but more accurate, is that option premium is the time value only (premium over intrinsic value).

By remaining on this website or using its content, you confirm that you have read and agree with the Terms of Use Agreement.

We are not liable for any damages resulting from using this website. Any information may be inaccurate or incomplete. See full Limitation of Liability.

Content may include affiliate links, which means we may earn commission if you buy on the linked website. See full Affiliate and Referral Disclosure.

We use cookies and similar technology to improve user experience and analyze traffic. See full Cookie Policy.

See also Privacy Policy on how we collect and handle user data.

© 2022 Macroption