Premium (contango)
A payment which, according to special circumstances, must be made in addition to a sum already paid. – In the case of coins and medals, the strike value. – In stock exchange trading, generally the difference between the nominal value and the higher market value of a security, expressed as a percentage of the nominal value; also called premium, markup, surcharge, report or premium. – In the foreign exchange market, if the spot price is lower than the forward price, the forward currency is traded at a premium (report). – Specifically in options trading: the higher price paid by an option buyer to acquire an option, the option price. – In the case of investment funds, the fee that the investor has to pay when purchasing units to cover the issue and redemption costs; also called issue premium, premium and – when switching from one fund to another within the same investment fund management company – switch fee. – The remuneration for transferring purchasing power to another party for a certain period of time (credit; loan): interest. – In the past, also the wage supplement paid to a commissioned craftsman who performed services on a Monday (craftsmen generally were not at work on a Monday in Germany). – The market surcharge formerly demanded when paper money was exchanged for Kurant coins, and especially for coins in gold. – See all-in fee, announcement, issue premium, issue money, disagio, lay money, minimum estimate of future needs, Monday money, option, pagament, Schlagschatz, seigniorage, Spores Raffel, swap rate, switcher, duty premium, additional payment.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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