https://v2.webnotes.in/tags/option-premium/Recent content in Option Premium on WebNotesHugoen-INSun, 21 Jun 2026 00:00:00 +0000https://v2.webnotes.in/option-premium/Sun, 21 Jun 2026 00:00:00 +0000https://v2.webnotes.in/option-premium/<p><strong>Option premium</strong> is the price of an options contract on a recognised exchange such as the <a href="https://v2.webnotes.in/national-stock-exchange/">National Stock Exchange</a> , quoted per unit of the underlying, that the option buyer pays and the option seller receives in full at the trade. It has exactly two parts: intrinsic value, the amount by which the option is already in the money, and time value, everything the buyer pays beyond that for the chance the option gains before expiry.</p>