Learn how option premiums are determined by factors like stock price, time to expiration, and volatility. Master the basics to trade options wisely and confidently.

I propose a model in which the price of an option is partly determined by macro-finance variables. In an application using an index of current business conditions, the new model outperforms existing ...

Option pricing is calculated using the Black-Scholes model, which takes four influential factors into account: the price of an underlying stock (assuming constant drift and volatility), an option’s ...

American options, which allow early exercise at any point prior to expiry, present a unique challenge in quantitative finance. Their valuation gives rise to free-boundary problems that are typically ...

Investing using options is very different from constructing a classic long-term buy-and-hold portfolio. In this segment from Motley Fool Live that first aired June 7, Motley Fool Canada analyst Jim ...

Option pricing and risk management constitute fundamental areas in modern financial theory and practice. Their interdisciplinary nature bridges advanced mathematical modelling, statistical analysis, ...

The ultimate goal of options trading is to make a profit, clearly. The value of this profit revolves around the strike price of the options, the price you pay as premium, and the current underlying ...