Is a Higher Option Premium Always Correlated with a Higher Minimum RFQ Size?

Not always, but generally, yes. A higher option premium, often driven by high implied volatility or longer time to expiration, indicates a more valuable or riskier contract.

Market makers are more willing to quote a tighter spread and potentially a smaller minimum RFQ size if the premium is high, as the profit per contract is greater. However, if the high premium is due to extreme risk (e.g. very high IV), the minimum RFQ size might increase to compensate for that risk.