Question: (decrease / increase) (less / more) (less / more) 3. Factors that affect the value of options Aa Aa Understanding how different factors affect the

(decrease / increase) (less / more) (less / more) 3. Factors

(decrease / increase) (less / more)

that affect the value of options Aa Aa Understanding how different factors

(less / more)

3. Factors that affect the value of options Aa Aa Understanding how different factors affect the value of options is the first step to understanding option pricing models. When all other things are held constant, an option on an extremely volatile share of stock is worth option on a less volatile share of stock. As the exercise price of a call option increases, the price of the call option will than an However, as the length of the option period , the call option price will increase. The call option price will decrease when the price of the underlying stock

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