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.