Go to the address shown in the book: http://www.hoadley.net/options/bs.htm scrol

Question

Go to the

  address shown in the book:

  http://www.hoadley.net/options/bs.htm

  scroll down to the online options calculator.  What happens        

  to the price of an option under each of the following

  situations?

a.   The strike price increase-

b.  Interest rate increases-

c.   Volatility increases-

d.   The time until the option matures increases-

What happens to the price of an option under each of the following situations? The strike price increase- Interest rate increases- Volatility increases- The time until the option matures increases-

Explanation / Answer

d. The time until the option matures increases-

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