The _____ is the price paid for an option.
A) obligated price
B) strike price
C) premium
D) intrinsic value
E) exercise price

Question

Quizplus · Accepted Answer

The premium is the price paid by the buyer of an option to the seller or writer of the option. It is also known as the option price or option cost. The premium is determined by factors such as the underlying asset price, time to expiration, volatility, interest rates, and market conditions.

The _____ Is the Price Paid for an Option