Difference between revisions of "Summary of the Determinants of Option Value"

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Summary of the Determinants of Option Value
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The table belows gives a Summary of the Determinants of Option Value:
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{| class="wikitable"
 +
!Factor
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!Call Value
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!Put Value
 +
|-
 +
|Increase in Stock Price
 +
|Increases
 +
|Decreases
 +
|-
 +
|Increase in Strike Price
 +
|Decreases
 +
|Increases
 +
|-
 +
|Increase in variance of underlying asset
 +
|Increases
 +
|Increases
 +
|-
 +
|Increase in time to expiration
 +
|Increases
 +
|Increases
 +
|-
 +
|Increase in interest rates
 +
|Increases
 +
|Decreases
 +
|-
 +
|Increase in dividends paid
 +
|Decreases
 +
|Increases
 +
|-
 +
|}
 
[[Category:finance]]
 
[[Category:finance]]
  

Latest revision as of 19:25, 27 August 2020

The table belows gives a Summary of the Determinants of Option Value:

Factor Call Value Put Value
Increase in Stock Price Increases Decreases
Increase in Strike Price Decreases Increases
Increase in variance of underlying asset Increases Increases
Increase in time to expiration Increases Increases
Increase in interest rates Increases Decreases
Increase in dividends paid Decreases Increases
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