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
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma 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
Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.