Volatility and Options
Posted by Sid Li on 02 April 2018 04:08 PM

There are seven factors that influence an option’s price:

1. The type of option (call or put)
2. The price of the underlying asset
3. The exercise price (or strike price) of the option
4. The expiration date
5. Volatility – Implied and Historical
6. Risk-free interest rate
7. Dividends and stock splits

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