Derivatives · glossary

Premium

The price of an option, paid once. Atlas paid €100,000 for the cap, 1% of its notional, and owed nothing more under it. Definition: Premium · Chapter 3

Explained in Chapter 3, The Cap, and the Family, of Derivatives.

Chapter 1 and this glossary are open to everyone; the whole edition is free to read with a free account until 31 January, and it stays open to an account opened by then.

As defined in the training master agreement
the amount the buyer of an Option pays for it, once, on the date the Confirmation states;
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Where this term lives

This term is part of one complete fictional deal, with every document attached and a test after every chapter. Open Derivatives → · All terms A–Z →