Premium vs Put Option

The upfront price paid by the option buyer to the option seller for the rights conveyed by the contract; the premium is the buyer's maximum possible loss if the option expires worthless; composed of intrinsic value and extrinsic (time) value.

A financial contract giving the buyer the right, but not the obligation, to sell an underlying cryptocurrency asset at a specified strike price on or before expiry; buyer pays premium upfront; profit occurs when spot price falls below strike minus premium paid.