Premium

The extra amount you pay for a security over and above its intrinsic value. For example the premium on a warrant is calculated as the price of the warrant minus the difference between the exercise price and the price of the underlying asset. So if a warrant costing 8 gives you the right to buy a share at 75, and that share was currently trading at 70, the premium would be 3 (8-5). For investment trusts, the premium is the amount by which the share price of the investment trust exceeds its net asset value per share.