Sensex Devta

Factors influencing the option price

Current stock price (spot price), Strike price, Time to expiration ,Volatility , Risk free rate and Dividend

Current stock price (spot price) : value of call option increase with increasing the stock price . while its value decreases whenever the stock price declines value of put option increase with decrease in stock price . while it value in decrease with increase in stock price.

Strike price : call option increase with decrease in strike price and decrease when increase in strike price vice versa with put

Time to expiration : call and put both are decrease phase with time

Volatility : call and put both value are increased with increasing in volatility

Risk free rate : value of call option increased with increasing in risk free rate. Value of put option decrease with increase in risk free rate