Option Premium. The amount of the option premium or the rate of an option or the option price comprises the so-called intrinsic value of the option and the so-called fair value. Intrinsic value: The intrinsic value of an option is the difference between the current rate of the option item and the strike price of the option. Thus, for example, a call option on the DAX at a strike price of 4,000--with the DAX at 4,300--has an intrinsic value of 300 index points. A put option on the DAX at a strike price of 4,500--with the same DAX--has an intrinsic value of 200 index points (4,500-4,300). Hence, the larger the difference between the current rate and the strike price, the higher the intrinsic value and thus the more expensive the option. Fair value: In addition to the intrinsic value, the option has a so-called fair value. The fair value is determined based on the difference between the actual rate of the option and the intrinsic value. For example, if the DAX is at 4,300 and a call option with a strike price of 4,000 is agreed upon and if the price of the option is at 450, the price of 450 exceeds the intrinsic value of the option, which is 300 points, by 150 points. In that scenario, the option has a fair value of 150 points. The fair value of an option depends primarily on three factors. Residual maturity of the option: An option with a residual maturity of several months, e.g., six months, must have a higher fair value than an option with a residual maturity of only one months since, in the first case scenario the option may be exercised five months longer than in the second case scenario. Volatility of the option item: Volatility reflects the frequency and degree of price fluctuations. For example, if the item on which the option is based experiences a fluctuation of 20% or if a fluctuation of such extent is expected in the future, this option will have a higher fair value than the option on a stock which has an annual fluctuation of, for example, 5% or for which such a fluctuation is expected; this is due to the fact that the higher fluctuation range results in the option buyer having a higher chance of an increase in value of the option during the residual maturity. Difference from strike price: In the money: The option is “in the money” if the price of the underlying asset exceeds the strike price in a call option or is below the strike price in a put option. This scenario is also referred to as “in the money” option. At the money: An option is an “at the money” opti...
Option Premium. In consideration of the Owners granting the Call Option, the Option Holder shall pay to the Owners upon delivery of the Vessel by the Option Holder to the Owners under the MoA a non-refundable non-interest bearing unsecured option premium (the "Option Premium") in the amount of United States Dollars nine million five hundred thousand (USD 9,500,000.00). The amount of the Option Premium will be settled through netting off from the purchase price of the Vessel under clause 21 of the MOA. To the extent that the Fair Market Value is less than USD 35,000,000, the Option Premium shall be increased by 81% of the difference between USD 35,000,000 and the Fair Market Value.
Option Premium. RSMI agrees to pay the Stockholders and the Escrow Agent (as defined below) a total of $200,000.00 in cash or other immediately available funds on or before March 31, 1998 (the "Option Premium") in exchange for the Options (as defined below). RSMI agrees to pay the Option Premium as follows:
Option Premium. In consideration of the grant by the Stockholders to the Company of the Option, the Company has previously paid the Stockholders Two Million Dollars ($2,000,000) (the “Option Premium”). Such amount has been allocated between the Stockholders as provided in Exhibit 2 hereto. If the Option is exercised by the Company, upon closing of the sale of the Shares the Option Premium shall be applied against the Option Purchase Price in accordance with Section 2.3 below. In all other circumstances, including but not limited to the sale of the Shares pursuant to the Put Right, the Stockholders shall be entitled to retain the Option Premium.
Option Premium. KTOC agrees to pay the Stockholder $10.00 in cash or other immediately available funds on or before March 31, 1998 (the "Option Premium") in exchange for the Option (as defined below).
Option Premium. Seller shall pay to Buyer $[*] for each Option. Such premium shall be due three (3) Business Days prior to the first day of each Option Period and shall be payable by wire transfer.
Option Premium. The Company has paid an option premium of HK$15 million for the original option to acquire interests in the Target Company and its subsidiaries from the Vendors and the option to dispose of Central Bingo to the Vendors upon the entering of the Option Agreement on 5 November 2010. Such option premium has been redefined as the option premium payable for the First Tranche Option and the Second Tranche Option.
Option Premium. Within three (3) business days of the date on which Buyer receives the Notice of USC Consent, Buyer shall pay Seller the Option Premium by certified check made payable to GRM&S as consideration for the grant of the Option. This Option Premium shall not be applied to the Purchase Price, and shall be retained by Seller whether or not the Option is exercised.
Option Premium. In the event AOS exercises the Option during the Option Period and the Closing is consummated pursuant to the Asset Purchase Agreement, the Purchase Price shall be reduced by the amount of the Option Premium as set forth in the Asset Purchase Agreement.
Option Premium. 6.1.1 In consideration for the Founders granting the Options to the Financier, the Financier shall on the Effective Date pay EUR 16,667 in cash to each of the Founders (i.e., in total EUR 50,001) and either (a) pay in cash to each of the Founders EUR 66,667 (i.e., in total EUR 200,001) or (b) if the Financier so decides in its sole discretion and its corporate organs have so approved, issue Consideration Shares amounting to EUR 66,667 in value to each of the Founders (i.e., in total EUR 200,001 in value).
