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What is the Option Premium?

The option premium is the price the seller receives from the option buyer.

As a rule, the buyer must pay the premium for options with traditional premium payment (such as equity options), immediately after purchasing the option.

Payment at Eurex Exchange usually takes place one exchange trading day after purchase of the option.

The exception is with options on futures contracts:
In this case, the buyer does not pay the premium immediately. As is the case with futures contracts, the premium for these options is settled via the daily offset of profits and losses.


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