The table belows gives a Summary of the Determinants of Option Value:
|Factor|Call Value|Put Value|h
|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|
bag
finance_public
created
Mon, 02 Jan 2012 18:12:14 GMT
creator
dirkjan
modified
Mon, 02 Jan 2012 18:12:14 GMT
modifier
dirkjan
tags
M13
Term
creator
dirkjan