What Are the Six Factors That Affect the Price of an Option

question 46

Essay

What are the six factors that affect the price of an option?
What is the relationship between each of these factors and the price of a call option?
The price of a put option?

---

Definitions:

Progression

refers to the process of developing, advancing, or moving forward, whether in terms of career, skills, or achievements.

Withdrawal

A psychological or physical retreat from a situation, relationship, or obligation.

Progression

Refers to the act of moving forward or advancing towards a more developed state or stage.

Stimulating Performance

The process of encouraging or motivating employees to improve their work output or to perform at a higher standard.