Call Option Price Short Paper
Overview: For this task, you will analyze the effect on a call option’s price that results from various financial factors.
Prompt:
First, review the module resources, especially Chapter 8 in your text. Then, address the following questions:
- What effect does Stock Price have on a call option price?
- What effect does Time expiration have on a call option price?
- What effect does Risk-free rate have on a call option price?
- What effect does Standard Deviation of Stock returns have on a call option price?
This is a short paper assignment.
