Price at which an investor on the foreign exchange has to pay for a particular option. The Price is quoted for one share or unit of the specified option, and is determined by a range of factors including its volatility, strike and stock price difference and the time left in which the sale must be completed. The option price will gradually decrease as it gets closer to its expiry date, eventually becoming a wasting asset once that date has passed. Both the time value and the Intrinsic value of an option are used to determine an options' total price. Also called option premium.
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