Premium
The price paid by the buyer (or received by the seller) for an options contract.
Explanation
Premium consists of intrinsic value plus extrinsic value. It is influenced by the underlying price, strike price, time to expiration, implied volatility, interest rates, and dividends. Premium is quoted per share; multiply by 100 for the actual cost per contract.
Example
A call option quoted at $3.50 costs $350 per contract (100 shares x $3.50).