Derivatives

Option Money

August 20, 2020
Derivatives

Put Money

August 20, 2020

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The price that is paid or received for a call option. For a buyer, it is the cost of the call option- the cost incurred by the buyer against the right to exercise on, i.e., buy, an underlying. For a seller (writer), it is the price received from granting the buyer the right to exercise.

For traded options, the call money is typically termed the “call premium“.

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