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Aiden Bernard
20 July, 08:37
What is premium?
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Aria Potter
20 July, 12:24
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See the answer below
Explanation:
The definition of premium will vary depending on the context in which it is being used.
If it is used in the insurance context, a premium is an amount of money paid at regular intervals (usually annually) to an insurance company by persons that want their properties insured under a given insurance plan.
In finance, premium can mean the total cost incurred in buying derivative financial instruments or the difference between the actual price of a bond and the price of issuance of the bond.
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