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There's no single key factor, but several key factors. These are
- Current asset price
- strike price
- volatility
- risk free rate
- dividend (continuous or discrete)
- time to maturity
These factors affect the option price. See the related link for actual examples of option pricing in practise
What else can I help you with?
The best stock to get with my retirement money?
It depends on your goals and what you mean by "best." For most people, the most rational option is probably mutual funds, not individual stocks.
Is company stocks a factor of production?
No, company stocks represent ownership in a firm, usually, and are not inputs in production.
What are the factors that affect currency put option and currency call option premiums?
go to yahoo stocks
How can one purchase an index option for stocks?
One can purchase an index option for stocks through Investopeida. They explain exactly what it involves and have links to the various providers. One can use TD Direct Investing to.
Call option and put option?
A call option allows its purchaser to buy ("call in") stocks at a certain price on a certain date--say, 100 shares of Walmart for $50 on November 1. A put option allows its purchaser to sell ("put") stocks on a certain price for a certain date. The seller of the option has to buy them (in a put) or sell them (in a call) if the option is exercised.
What have investors agreed to when they sign a contract guaranteeing them the option of selling shares of stocks at a specified price in the future?
spot option
What the role does stock index play in a financial market?
The definition of index is a measure of the change in an economy or securities market. This is simiar to the value given to individual stocks, but its a group of individual stocks.
Is an employer stock option incentive taxable income?
They are not taxable. Stocks are not taxed based on your income. They are taxed by region or where you may live. That is why these stocks are not taxable.
Where can one lookup stocks online?
Stocks can be looked up online on many news websites such as the BBC and the New York Times. These will give details of the various stocks and give their pricing earlier in the day. They will also give annual and quarterly highs and lows.
What are the benefits of investing in mutual funds versus investing in individual stocks?
Mutual Funds are 'pools' made up of individual stocks. Therefore, the risk is spread over a wider base of investments.
What are the worst stocks to buy during a recession?
The worst stocks that you can buy during a recession is the most expensive stocks on the market. The prices will continue to drop as you lose even more money so the safest option is to avoid buying stocks until the recession recovers a bit.
What are the differences between dividend stocks and the SP 500 index, and which option is more beneficial for long-term investors?
Dividend stocks are individual company stocks that pay out regular dividends to shareholders, while the SP 500 index is a collection of 500 large-cap stocks representing the overall market. Dividend stocks can provide a steady income stream, while the SP 500 offers diversification. For long-term investors, the SP 500 index is generally considered more beneficial due to its broader exposure and historical performance.
