What Determines an Option's Price?
What determines an option's price? Five inputs you can look up, plus volatility. We reprice one real AAPL call and rank each input by dollars. See the ranking.
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What determines an option's price? Five inputs you can look up, plus volatility. We reprice one real AAPL call and rank each input by dollars. See the ranking.
Two nearly identical options can carry wildly different prices. Implied volatility is why: the market's priced-in expected move, mapped across six names.