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The Baugur offer of 90 pence per share represents a premium of around 21% to the closing price of 74.5 pence on December 5 - the day before Whittard announced it had received an approach.
Then buy a put option giving you the right to sell 100 shares at a strike price of $100 in March 2006 for a premium of around $300.
It carries a premium of around $40,000 a year.
You will pay a premium of around $100, but the benefits far outweigh the cost.
Kroger is paying a premium of around 33 percent, or more than $600 million, to snag its upscale rival.
Non-GM soya exports to Japan, for example, command a premium of around 10%.But Europe's resistance to GM foods is having an effect beyond its borders.
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Be aware that there is a buyers' premium of around 20% of the hammer price on every lot.
In addition to this, traders should pay workers a "social premium" of around 5-10% for development and technical assistance.The SOAS research suggests that Fairtrade has failed to make a positive difference.
"Seeing how quiet the market's been over the summer would indicate there's a premium of good players around," he told BBC Radio Suffolk.
Yet even if it sweetens its offer for the fertilizer group by 15 percent, to around $150 a share, BHP would be paying a premium of only around $11 billion over Potash's predeal value.
Under the terms of the proposed deal, the investment group would make a takeover bid for Yahoo at a relatively low premium of around 20% to its current price of around $13 per share, valuing the company at just over $20 billion.
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