6. Factors that affect the value of options Understanding how different factors affect the value of options is the first step to understanding option pricing models. The following table shows how increases in the given factors on the left affect the value of a put option. For each factor, indicate whether an increase In its value causes the value of the put option to increase or to decrease. When is a call option considered to be in-the-money? When the exercise price exceeds the current stock price When the exercise price is below the current stock price