# Premium (contango)

- Canonical URL: https://www.gerhardmerk.de/premium-contango
- Post ID: 590843
- Modified: 2023-07-25T21:13:28+00:00
- Language: en

## Definition

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. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 1.1.1