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How the features of an option affect the option prices

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Reference no: EM133118205

The following site can be used to demonstrate how the features of an option affect the option's prices. Go to https://www.hoadley.net/options/bs.htm . Scroll down to the online options calculator. What happens to the price of an option under each of the following situations?

  1. The strike price increases.
  2. Interest rates increase.
  3. Volatility increases.
  4. The time until the option matures increases.

Reference no: EM133118205

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