Glossary
- Offering price
- Official Market (Amtlicher Markt)
- Offsetting transaction
- Omega (warrants)
- Open Market (Freiverkehr)
- Open outcry
- Open-ended real estate funds
- Opening price
- Opération blanche
- Operational profit
- Option
- Option premium
- Option writer
- Order
- Order book
- Order book statistics
- Order routing
- Ordinary share
- OTC (over-the-counter) trading
- Other types of certificates
- Out of the money (warrants)
- Outperformance certificate
- Overweight
Option premium
Price which an option buyer pays to the option seller (writer) for an options contract. In return, the buyer is entitled to buy the underlying security at the exercise price.
The option premium reflects the intrinsic value and the time value of the option. Option pricing models such as the Black-Scholes model are typically used to calculate a fair option premium.
The option premium is also referred to as premium income.
Our glossary explains important financial terms and should not leave any questions unanswered. However, if you are missing a definition, please write to us at redaktion@deutsche-boerse.com. We will then include the term if possible.
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