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WebJun 22, 2024 · Since option contracts are for 100 shares, the amount of the option premium is multiplied by 100 to arrive at the cost of the option. So an option premium of $0.50 per share would be $50 when multiplied by 100 shares. The option premium is a non-refundable, up-front fee that the option buyer pays to the option seller when the contract is purchased. WebFeb 10, 2024 · Upfront cost: Buyers must pay a premium to purchase an option, and option sellers collect his premium. There are no upfront costs for futures trades, just margin … how do hsa plans work for families
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