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What is the value of an option？

幫考網校2020-10-14 08:55:56
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The value of an option is the price that an investor pays for the right to buy or sell an underlying asset at a predetermined price (strike price) within a specified time period. The value of an option is influenced by various factors such as the price of the underlying asset, the time remaining until expiration, the volatility of the underlying asset, and the interest rates. The value of an option can increase or decrease depending on changes in these factors.
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