Stock Options

Mitul Patel
Flashcards by Mitul Patel, updated more than 1 year ago
Mitul Patel
Created by Mitul Patel over 2 years ago
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Hull (8th Edt) Ch 10
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Question Answer
(6) Factors Affecting Option Prices Image (binary/octet-stream)
Effect on Option Price of Variable Changes (European and American) Image (binary/octet-stream)
Effect of Stock Price on Option Price *Calls become more valuable as S increases *Puts become more less valuable as S increases Image (binary/octet-stream)
Effect of Strike Price on Option Price *Calls become less valuable as K increases *Puts become more valuable as K increases Image (binary/octet-stream)
Effect of TTE on Option Price Image (binary/octet-stream)
Effect of Volatility on Option Prices Image (binary/octet-stream)
Effect of RF Rate on Option Prices Image (binary/octet-stream)
Effect of Future Dividends * Reduce the stock price on ex-dividend date *Decreases value of calls/increases value of puts
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