premium income

premium income definition - finance
Money received by the writer (the creator) of a put or call option. By selling a put or call option, the writer hopes that the option wonÂ’t be exercised and he or she will be able to collect the premium income.

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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