Answer:
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.
