Chapter 02 · Section 2.1
Option premiums - Q4
An option premium is paid:
a) when the option is exercised.
b) when the option transaction takes place.
c) when the option transaction takes place and is refunded when the option is exercised.
If you did not have to pay the premium immediately, wouldn't there be a danger for some people to buy too many options now, thinking that they could pay later?