Homonym: premium (Subscription)
The term "premium" refers to something of higher quality or value compared to standard options. It often indicates superior features, materials, or services that justify a higher price. For example, a premium car may offer advanced technology, luxury interiors, and enhanced performance compared to regular models.
In finance, "premium" can also describe the additional amount paid for an insurance policy or the extra cost of a financial option. For instance, when purchasing a stock option, the premium is the price paid for the right to buy or sell the stock at a specified price within a certain timeframe.