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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Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
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
Publications connexes
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.