premium income

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Premium income

The income received by an investor who sells an option.

Premium Income

The money one makes from selling (or writing) an option contract. The term derives its name from the fact that the original sale price of an option is called the premium. One easy way to make money investing at little risk is to write covered options one does not expect to be exercised, and profiting from the premium income.

premium income

Fees in the form of premiums received by an investor who sells short a call option or put option. For example, an investor holding shares of BP can earn premium income by writing covered call options that give the buyer of the calls the right to purchase the option writer's BP shares at a fixed price until a stated date.
References in periodicals archive ?
The "Eurasia Insurance Co." company with the volume of premium incomes amounting to 27.6 billion tenge, with an increase of 17.9 percent over the year occupies the leading position among insurance companies of Kazakhstan engaged in insurance of property against damage.
The "Eurasia Insurance Co." company is followed by "Halyk-Kazakhinstrakh", subsidiary insurance company of Halyk Bank of Kazakhstan JSC (KZIS), with the volume of premium incomes amounting to 10.9 billion tenge, and with annual growth by 34.3 percent.
The official, however, did not provide the exact figures on the companies' premium incomes.
paid 559.990 millions premium incomes on fresh policies.
The value of the motor insurance market reflects gross premium incomes. Gross premium income is defined as the insurer's premium income for the year from its policies, calculated without reduction for reinsurance premiums paid or payable by the insurer.
Chu predicts that each salesperson can sign monthly at least four new policies with minimum annual premium of NT$35,000 (US$1,167) for each policy, hoping the salespersons can generate half of the company's premium incomes in the future.
* The German motor insurance market is expected to generate total gross premium income of $32,655.8m in 2014, representing a compound annual growth rate (CAGR) of 4.1% between 2010 and 2014.
* The Japanese motor insurance market is expected to generate total gross premium income of $67,687.5m in 2014, representing a compound annual growth rate (CAGR) of 4.6% between 2010 and 2014.
* The global motor insurance market is expected to generate total gross premium income of $828,878.3m in 2014, representing a compound annual growth rate (CAGR) of 4.8% between 2010 and 2014.
* The Spanish motor insurance market is forecast to generate total gross premium income of $8,348.6m in 2014, representing a compound annual rate of change (CARC) of -11.5% between 2010 and 2014.
* The Canadian motor insurance market is expected to generate total gross premium income of $36,939.0m in 2014, representing a compound annual growth rate (CAGR) of 3.2% between 2010 and 2014.
* The Dutch motor insurance market is expected to generate total gross premium income of $6,040.5m in 2014, representing a compound annual growth rate (CAGR) of 0.4% between 2010 and 2014.

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