Factors Influencing Option Prices
Option prices (premiums) are affected by several variables, collectively analyzed under option pricing models such as the Black-Scholes model. The main factors include:
Underlying Asset Price: Higher prices increase call premiums and decrease put premiums.
Strike Price: The closer the strike price is to the current price, the higher the premium.
Volatility: More volatility means higher premiums due to increased uncertainty.
Time to Expiry: Longer durations mean more time value.
Interest Rates: Higher interest rates slightly increase call premiums.
Dividends: Expected dividends can reduce call premiums and increase put premiums.
Option prices (premiums) are affected by several variables, collectively analyzed under option pricing models such as the Black-Scholes model. The main factors include:
Underlying Asset Price: Higher prices increase call premiums and decrease put premiums.
Strike Price: The closer the strike price is to the current price, the higher the premium.
Volatility: More volatility means higher premiums due to increased uncertainty.
Time to Expiry: Longer durations mean more time value.
Interest Rates: Higher interest rates slightly increase call premiums.
Dividends: Expected dividends can reduce call premiums and increase put premiums.
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Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Pubblicazioni correlate
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.