Decrease and Premium

noun

• A change downward.
  • usage: "there was a decrease in his temperature as the fever subsided"; "there was a sharp drop-off in sales"
  • synonyms: lessening, drop-off
• A process of becoming smaller or shorter.
  • synonyms: decrement
• The amount by which something decreases.
  • synonyms: decrement
• The act of decreasing or reducing something.
  • synonyms: diminution, reduction, step-down

verb

• Decrease in size, extent, or range.
  • usage: "The amount of homework decreased towards the end of the semester"; "The cabin pressure fell dramatically"; "her weight fell to under a hundred pounds"; "his voice fell to a whisper"
  • synonyms: diminish, lessen, fall
• Make smaller.
  • usage: "He decreased his staff"
  • synonyms: lessen, minify

• (v.t.) To cause to grow less; to diminish gradually; as, extravagance decreases one's means.
• (v.) A becoming less; gradual diminution; decay; as, a decrease of revenue or of strength.
• (n.) To grow less, -- opposed to increase; to be diminished gradually, in size, degree, number, duration, etc. or in strength, quality or excellence; as, they days decrease in length from June to December.
• (v.) The wane of the moon.

noun

• Payment for insurance.
  • synonyms: insurance premium
• The amount that something in scarce supply is valued above its nominal value.
  • usage: "they paid a premium for access to water"
• A fee charged for exchanging currencies.
  • synonyms: agio, agiotage, exchange premium
• A prize, bonus, or award given as an inducement to purchase products, enter competitions initiated by business interests, etc..
  • usage: "they encouraged customers with a premium for loyal patronage"
• Payment or reward (especially from a government) for acts such as catching criminals or killing predatory animals or enlisting in the military.
  • synonyms: bounty

adjective

• Having or reflecting superior quality or value.
  • usage: "premium gasoline at a premium price"

• (n.) A sum of money paid to underwriters for insurance or for undertaking to indemnify for losses of any kind.
• (n.) A reward or recompense; a prize to be won by being before another or others, in a competition; reward or prize to be adjudged; a bounty; as, a premium for good behavior or scholarship, for discoveries, etc.
• (n.) A sum in advance of or in addition to, the nominal or par value of anything; as, gold was at a premium; he sold his stock at a premium.
• (n.) Something offered or given for the loan of money; bonus; -- sometimes synonymous with interest, but generally signifying a sum in addition to the capital.

(1) A bond sold above its par value. (2) The price of an option contract; also, in futures trading, the amount by which the futures price exceeds the price of the spot commodity. (3) For convertibles, amount by which the price of a convertible exceeds parity, and is usually expressed as a percentage. Suppose a stock is trading at $45, and the bond is convertible at a $50 stock price and the convertible bond trading at 105. A similar bond without the conversion feature trades at $90. In this case, the' Premium' is $15, or 16. 66%=(105-90)/90. If the premium is high, the bond trades like any fixed income bond; if low, like a stock. See: Gross parity, net parity. (4) For futures, excess of fair value of future over the spot index, which in theory will equal the Treasury bill yield for the period to expiration minus the expected dividend yield until the future's expiration. (5) For options, price of an option in the open market (sometimes refers to the portion of the price that exceeds parity). (6) For straight equity, price higher than that of the last sale or inside market. Related: Inverted market premium payback period. Also called break-even time; the time it takes to recover the premium per share of a convertible security.