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premium definition - finance
  1. A price that is above market prices.
  2. The amount that a policy holder pays an insurance company for coverage.
  3. In the options market, the cost of the option.
  4. In the futures market, an upward adjustment in price that is allowed for delivery of a commodity of a higher grade against a futures contract.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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