Product Premium
Gross option value, deductions and the user's net premium.
#Gross premium
Gross premium is the price of the short-call exposure before execution and settlement costs. It depends on strike, expiry, volatility, rates, distributions, liquidity and size.
#Net premium
Net premium = gross premium − execution cost − fees − settlement costA quote should state amount, unit, timestamp, strike, expiry, size and every deduction. Gross premium is not realized yield.
#Premium is paired with an obligation
Receipt at entry does not complete the trade. Strategy PnL includes the Stock Token move, short-call payoff, basis, funding where applicable, execution and exit costs.