How Does the Premium Relate to the Option Type?
The premium is the price paid by the buyer to the seller for the option contract. It is determined by factors like the underlying asset's price, strike price, time to expiration, and volatility.
Generally, options that are In-The-Money (ITM) or have a longer time to expiration will command a higher premium, regardless of whether they are a call or a put.
Glossar
Put-Call Parity
Relationship ⎊ Put-call parity describes a fundamental relationship between the price of a European call option, a European put option, and the underlying asset price, assuming they share the same strike price and expiration date.
Time to Expiration
Decay ⎊ Time to Expiration, within cryptocurrency options and financial derivatives, represents the remaining lifespan of a contract before its termination and potential exercise or assignment.