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Option Price

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Option price
Also called the option premium; the price the buyer of the options contract pays for the right to buy or sell a security at a specified price in the future.

Option Price
The price one pays to buy an option contract, whether it is a call or a put, when one is the first buyer. That is, when the option is written, its first buyer pays the option price. It is more commonly called a premium or an option premium. It should not be confused it with the strike price, which is the price one would pay for the underlying asset, should the option be exercised.


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