Options Pricing Models
Options are affected by many different market forces. Most options traders
have, at one time or another, found themselves asking, Among all the different trading months, strike prices, and trading strategies,
how do I identify an option position that represents a profit opportunity? Option pricing models enable you to identify potentially profitable options
positions.
Aspen Graphics currently uses the Black/Scholes
options pricing model. The value of an option is determined by the following
variables:
Strike Price
Time to Expiration
Underlying Price
Interest Rates
Volatility
Topics:
The Black Scholes Options Pricing Model