The price paid for an option is called the
A) settlement price.
B) mark-to-market price.
C) option premium.
D) call price.

Question

Quizplus · Accepted Answer

The price paid for an option is referred to as the option premium. This is the amount paid by the option buyer to the option seller in exchange for the right to buy or sell the underlying asset at a specified price within a specific period. The other options are not correct definitions of the price paid for an option.

The Price Paid for an Option Is Called the