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.
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
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Informasi dan publikasi ini tidak dimaksudkan, dan bukan merupakan, saran atau rekomendasi keuangan, investasi, trading, atau jenis lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Ketentuan Penggunaan.
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
Publikasi terkait
Pernyataan Penyangkalan
Informasi dan publikasi ini tidak dimaksudkan, dan bukan merupakan, saran atau rekomendasi keuangan, investasi, trading, atau jenis lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Ketentuan Penggunaan.