Definition of 'Options'
Options are generally exercisable in European or American style. European style options can be exercised on the expiration date only. American style options can be exercised on any date up to and including the expiration date.
There are six factors that determine an options price: (1) Price of underlying instrument (2) Interest rate (3) Time to expiration (4) The Strike Price (5) Volatility (6) Dividends.
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