What is Option Premium? Explain the factors that affect Put and Call Option Premium.

An option premium is the price that an investor pays to purchase an options contract. It is essentially the cost of acquiring the right, but not the obligation, to buy or sell the underlying asset at a predetermined price within a specific time frame. The premium is influenced by various factors, which can impact both call and put options differently, depending on whether the option gives the holder the right to buy or sell the underlying asset.

### Factors Affecting Option Premium:

1. Underlying Asset Price:
   The most direct factor affecting the option premium is the price of the underlying asset. For a call option, the higher the price of the underlying asset relative to the strike price, the higher the option premium. This is because the potential for profit increases as the asset price moves further above the strike price. Conversely, for a put option, the premium increases as the price ___ _________ _____ ________ _____ ___ _____ __________ _____ ________.
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