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DERIVATIVES-BASICS5 MIN READ

Talk Through Option Premium

Explain why an option has premium through intrinsic value, time value, and volatility.

Dev D COO 1 Right 2 Time 3 Trade-off The objection 20 sec Premium pushback Dev says: Why pay $95,000 for an option we might never exercise? The premium conversation decides whether stakeholders see options as waste, insurance, or flexibility. $95k premium premium pieces The framework

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