|
There are 6 factors
which impact on the price of an option. These factors are:
|
Factor
rises / is higher
|
Price
of call
|
Price
of put
|
|
Option
exercise price
|
lower
|
higher
|
|
Current
underlying price
|
higher
|
lower
|
|
Remaining
life
|
higher
|
higher
|
|
Volatility
|
higher
|
higher
|
|
Interest
rates
|
higher
|
lower
|
|
Dividend
|
lower
|
higher
|
|
