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LSDefine

Simple English definitions for legal terms

option premium

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A quick definition of option premium:

An option premium is the amount of money that someone pays to buy an option. An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an asset at a certain price. The premium is like a fee that the buyer pays to have this right. The price of the premium depends on many factors, such as the price of the asset, the time left until the option expires, and how volatile the asset's price is.

A more thorough explanation:

Option premium refers to the price paid by an investor to purchase an option contract. An option contract gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specific time period.

For example, if an investor wants to buy a call option on a stock, they will pay a premium to the seller of the option. The premium is determined by various factors such as the current price of the stock, the strike price of the option, the time until expiration, and the volatility of the stock.

The option premium is the cost of buying the option and is similar to an insurance premium. The buyer pays the premium to the seller to protect against potential losses if the price of the underlying asset moves in an unfavorable direction.

optionor | option spread

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[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
WorthlessAttractiveZombie
7:44
My berkeley paragraph finally disappeared. I definitely think it is just an indicator that they are actively reviewing files, and does not mean anything about A, WL, or Rs
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