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Options are valued using a theoretical model known as the "Black Scholes Model". The black scholes model prices options based on what are known as "Greeks", which are mathematical parameters of variables that influences the price of an option.
However, this is a theoretical model because it cannot take into consideration the actual supply and demand of an option in the market and such forces does take the price of an option away from their theoretical value.
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What is the value of a call option on maturity?
The value of a call option on maturity is equal to its intrinsic value.For instance, a call option with a strike price of $10 on maturity and its underlying stock being at $15 will have a value of $5, which is its intrinsic value.
How does the put option values fall and rise while call options values rise and fall as the rerlevant stock prices rises?
The Payoff i.e. profit for a Call Option is St-X where St is the market price at time t and X is the exercise price. Assuming that it is an American Style option where it can be exercised at any time, If St is significantly greater than the exercise price,X, (the agreed price to buy an option at) then if the option holder exercises it immediately they will be 'in-the-money.' This means it has a high intrinsic value which causes a rise in value for the option. The Payoff for a Put Option is X-St where X=exercise price and St equals market price at time t. If the market price increases the gap between X and St (Payoff or Profit) reduces or if X<St then they will be making a loss. This will mean it will have a low intrinsic value (value if exercised immediately) therefore the value of the option will fall.
A stock is currently selling at Rs 165 .The put option at Rs163 strike price costs Rs 3 . what is the time value of the option?
3
What is the minimum value of a call option?
The minimum value of a call option is zero. Why is that? Because options lose value with time until they expire on their pre-determined expiration date. Upon expiration, if the price of the underlying stock is less than the strike price of the call option, then the call seller gets to keep the premium received, whereas the call buyer has lost all the money paid for the option. For additional education there are many good websites to consult. One site of interest ishttp:/www.safe-options-trading-income.com.
Difference between put option and call option?
The holder/purchaser/owner of a call option contract has the right to buy an asset (or call the asset away) from a writer/seller of a call option contract at the pre-determined contract or strike price. The holder/purchaser/owner of a call option contract expects the price of the underlying asset to rise during the term or duration of the call contract, for as the value of the underlying asset increases so does the value of the call option contract. Conversely, the write/seller of a call option contract expects the price of the underlying asset to remain stable or to decline. The holder/purchaser/owner of a put option contract has the right to sell an asset (or put the asset) to a writer/seller of a put option contract at the pre-determined contract or strike price. The holder/purchaser/owner of a put option contract expects the price of the underlying asset to decline during the term or duration of the put contract, for as the value of the underlying asset declines the contract value increases. Conversely, the writer/seller of a put option contract expects the price of the underlying asset to remain stable or to rise.
What is difference between name and value in an HTML Form?
'Name' can be a field and 'value' can defined to the that particular field. Example: <select name="Car List"> <option value="volvo">Volvo</option> <option value="saab">Saab</option> <option value="mercedes">Mercedes</option> <option value="audi">Audi</option> </select>
How do you determine whether the currency option is in the money?
"In the Money" is a term used in option trading as a determinate to if an option has "Intrinsic Value." In the Money, does NOT mean in profit. There are two components to an option value, TIME VALUE, and INTRINSIC VALUE. Time Value + Intrinsic Value = Option Premium. When the market price is above the option strike price of a CALL option, that option is considered "In the Money" i.e. having intrinsic value. When the market price is below the option strike price of a PUT option, that option is considered "In the Money" i.e. having intrinsic value.
Html pull down menu example for month day and year I would like to get an example on how to write month day and year in HTML form?
# <select name="month" id="month"> # <option value="1" <?PHP if($month==1) echo "selected";?>>January</option> # <option value="2" <?PHP if($month==2) echo "selected";?>>February</option> # <option value="3" <?PHP if($month==3) echo "selected";?>>March</option> # <option value="4" <?PHP if($month==4) echo "selected";?>>April</option> # <option value="5" <?PHP if($month==5) echo "selected";?>>May</option> # <option value="6" <?PHP if($month==6) echo "selected";?>>June</option> # <option value="7" <?PHP if($month==7) echo "selected";?>>July</option> # <option value="8" <?PHP if($month==8) echo "selected";?>>August</option> # <option value="9" <?PHP if($month==9) echo "selected";?>>September</option> # <option value="10" <?PHP if($month==10) echo "selected";?>>October</option> # <option value="11" <?PHP if($month==11) echo "selected";?>>November</option> # <option value="12" <?PHP if($month==12) echo "selected";?>>December</option> # </select> # # <select name="day" id="day"> # <option value="1" <?PHP if($day==1) echo "selected";?>>1</option> # <option value="2" <?PHP if($day==2) echo "selected";?>>2</option> # <option value="3" <?PHP if($day==3) echo "selected";?>>3</option> # <option value="4" <?PHP if($day==4) echo "selected";?>>4</option> # <option value="5" <?PHP if($day==5) echo "selected";?>>5</option> # <option value="6" <?PHP if($day==6) echo "selected";?>>6</option> # <option value="7" <?PHP if($day==7) echo "selected";?>>7</option> # <option value="8" <?PHP if($day==8) echo "selected";?>>8</option> # <option value="9" <?PHP if($day==9) echo "selected";?>>9</option> # <option value="10" <?PHP if($day==10) echo "selected";?>>10</option> # <option value="11" <?PHP if($day==11) echo "selected";?>>11</option> # <option value="12" <?PHP if($day==12) echo "selected";?>>12</option> # <option value="13" <?PHP if($day==13) echo "selected";?>>13</option> # <option value="14" <?PHP if($day==14) echo "selected";?>>14</option> # <option value="15" <?PHP if($day==15) echo "selected";?>>15</option> # <option value="16" <?PHP if($day==16) echo "selected";?>>16</option> # <option value="17" <?PHP if($day==17) echo "selected";?>>17</option> # <option value="18" <?PHP if($day==18) echo "selected";?>>18</option> # <option value="19" <?PHP if($day==19) echo "selected";?>>19</option> # <option value="20" <?PHP if($day==20) echo "selected";?>>20</option> # <option value="21" <?PHP if($day==21) echo "selected";?>>21</option> # <option value="22" <?PHP if($day==22) echo "selected";?>>22</option> # <option value="23" <?PHP if($day==23) echo "selected";?>>23</option> # <option value="24" <?PHP if($day==24) echo "selected";?>>24</option> # <option value="25" <?PHP if($day==25) echo "selected";?>>25</option> # <option value="26" <?PHP if($day==26) echo "selected";?>>26</option> # <option value="27" <?PHP if($day==27) echo "selected";?>>27</option> # <option value="28" <?PHP if($day==28) echo "selected";?>>28</option> # <option value="29" <?PHP if($day==29) echo "selected";?>>29</option> # <option value="30" <?PHP if($day==30) echo "selected";?>>30</option> # <option value="31" <?PHP if($day==31) echo "selected";?>>31</option> # </select> # # <select name="year" id="year"> # <?PHP for($i=date("Y"); $i<=date("Y")+2; $i++) # if($year == $i) # echo "<option value='$i' selected>$i</option>"; # else # echo "<option value='$i'>$i</option>"; # ?> # </select>
How do you persist data in PHP forms specially drop down box?
When getting any Information in PHP from a form use $_POST (unless your method is GET in which case $_GET)This is how you do it (I'm using ( and ) instead of < and >)(?php$my_drop_down = $_POST['drop_down_name']; #Then $my_drop_down equals what ever's in value= eg My Value 1, My Value 2,My Value 3?)(select name="drop_down_name")(option value="My Value 1" selected)My Option 1(/option)(option value="My Value 2")My Option 2(/option)(option value="My Value 3")My Option 3(/option)(/select)(I've also added a few php help links)
What is the correct HTML for making a drop-down list?
<select> <option value="Volvo">Volvo</option> <option value="Saab">Saab</option> <option value="mercedes">Mercedes</option> <option value="Audi">Audi</option> </select>
What is the value of a call option on maturity?
The value of a call option on maturity is equal to its intrinsic value.For instance, a call option with a strike price of $10 on maturity and its underlying stock being at $15 will have a value of $5, which is its intrinsic value.
How to display listbox selected value in a texbox?
Here's the code: <head> <title>List Box Value in Text Box</title> <script type="text/javascript" language="javascript"> function getValue(string) { document.getElementById("text").value = string; } </script> </head> <body> <form name="form1"> <h2>Get Selected Value</h2> <select name="select" size="5" onclick="getValue(this.value)"> <option value="apple">Apple</option> <option value="tangerines">Tangerines</option> <option value="banana">Banana</option> <option value="grapes">Grapes</option> </select> <input type="text" id="text" name="text" /> </form> </body> </html>
What is the HTML for a piczo navigation box?
Answer <form method="post" name="nameform"> <select name="emmasmenu" size="1" style="background-color: #000000; BORDER-BOTTOM: outset; BORDER-LEFT: outset; BORDER-RIGHT: outset; BORDER-TOP: outset; COLOR: #87CEFA; TEXT-TRANSFORM: uppercase; FONT-FAMILY: small fonts; FONT-SIZE: 7px"> <option value="URL HERE">NAME HERE</option> <option value="URL HERE">NAME HERE</option> <option value="URL HERE">NAME HERE</option> <option value="URL HERE">NAME HERE</option> <option value="URL HERE">NAME HERE</option> <option value="URL HERE">NAME HERE</option> </select> <input type="button" value="Click!" onclick="location = document.nameform.emmasmenu.options [document.nameform.emmasmenu.selectedIndex].value;" style="BACKGROUND: #000000; COLOR: #87CEFA; FONT-FAMILY: small fonts; TEXT-TRANSFORM: uppercase; FONT-SIZE: 7px"> </option></option></option></select></form>
What causes an increase in the value of an option?
An increase in the market price of the item the option is for.
Options selling at prices higher than their exercise values?
Option value is composed of two components : Option value = Intrinsic value + time value Intrinsic value is the amount by which the option is in the money and given by the formula Max (0, S-X) Time value of option - this value depends on the time until the expiration date and the volatility of the underlying instrument's price. The time value of an option is always positive and declines exponentially with time, reaching zero at the expiration date. If the option is out of money its intrinsic value will be 0 but will still have time value of money and hence options sell higher than their exercise price. Read more: http://www.justanswer.com/questions/1v2lv-options-sell-prices-higher#ixzz0NUj0iVGm
What is the fraction of 20 pounds?
Since 20 pounds is an integer value, the best option is 20/1 pounds.Since 20 pounds is an integer value, the best option is 20/1 pounds.Since 20 pounds is an integer value, the best option is 20/1 pounds.Since 20 pounds is an integer value, the best option is 20/1 pounds.
How do you write value in a sentence?
The second option offered the best value for the price.
