Option Pricing: Why Premium Changes
Premium is the price paid by the option buyer. It depends on:
1. Intrinsic Value
Value if exercised today.
2. Time Value
More time → more chances of profit → higher premium.
3. Volatility (IV – Implied Volatility)
When volatility increases, option premiums rise.
4. Supply & Demand
High demand increases option prices.
5. Interest Rates & Dividends
These have minor impact but still matter for pricing models.
Premium is the price paid by the option buyer. It depends on:
1. Intrinsic Value
Value if exercised today.
2. Time Value
More time → more chances of profit → higher premium.
3. Volatility (IV – Implied Volatility)
When volatility increases, option premiums rise.
4. Supply & Demand
High demand increases option prices.
5. Interest Rates & Dividends
These have minor impact but still matter for pricing models.
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Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
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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
Publicações relacionadas
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.