The premium on an option contract is:

Question

Options

• AThe price of the underlying commodity at the time of the transaction
• BThe price at which the transaction on the underlying commodity will be carried out if and when the option
• CThe price the buyer of the option pays to the seller when entering into the options contract
• DThe price at which the two counterparties can close-out their position

• A
  4% (1)
• B
  13% (3)
• C
  75% (18)
• D
  8% (2)

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