How to find the premium on a call option. Apr 19, - A call option lets you buy a stock's shares at a fixed price, which is called the strike price. When the stock's market price exceeds the strike price, the option has an exercise value. Yet the option premium, which is the price you pay for the option, exceeds this intrinsic value. The option premium, also known.

How to find the premium on a call option

Calculating gains and losses on Call and Put option transactions

How to find the premium on a call option. Call Options. • A non-binding agreement (right but not an obligation) to buy an asset in the future, at a price set today. • Preserves the upside potential, while at the Call. • Payoff = Max [0, spot price at expiration – strike price]. • Profit = Payoff – future value of option premium. • Examples & – S&R Index 6-month Call.

How to find the premium on a call option

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