Flashcards
Stock Options
Flashcards do conjunto (8)
- 1(6) Factors Affecting Option Prices
- 2Effect on Option Price of Variable Changes (European and American)
- 3Effect of Stock Price on Option Price*Calls become more valuable as S increases
*Puts become more less valuable as S increases
- 4Effect of Strike Price on Option Price*Calls become less valuable as K increases
*Puts become more valuable as K increases
- 5Effect of TTE on Option Price
- 6Effect of Volatility on Option Prices
- 7Effect of RF Rate on Option Prices
- 8Effect of Future Dividends* Reduce the stock price on ex-dividend date
*Decreases value of calls/increases value of puts