What Is the Functional Equivalent of a “Transaction Fee” in an Options Contract?

The functional equivalent is the premium paid by the buyer to the seller (writer) of the option. The premium is the cost of entering the contract and represents the compensation for the risk taken by the seller.

This premium is necessary for the contract to be created and executed, much like a transaction fee is necessary for a cryptocurrency transaction to be processed by a miner. Brokerage commissions may also apply, but the premium is the core contractual cost.