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What Is the Term for the Total Cost of Buying an Option?

The total cost of buying an option is the option premium.
Greeks.Live22.11.25

What Is the Term for the Total Cost of Buying an Option?

The total cost of buying an option is called the option premium. The premium is the price per share or per unit of the underlying asset paid by the buyer to the seller for the rights granted by the contract.

This is the maximum loss for the option buyer.

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