premium

Definitions (6)

1. The amount by which a bond or stock sells above its par value.
2. The amount by which a closed-end fund's market price exceeds the value of its holdings.
3. An additional cost above the normal cost.
4. The amount that the buyer of an option pays to the seller.
5. A regular periodic payment for an insurance policy, here also called insurance premium.
6. The amount by which the first trading of an IPO exceeds its offering price. opposite of discount.

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married put soft call provision