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. than an option on a less volatile share of stock When all other things are held constant, an option on an extremely volatile share of stock is worth As the exercise price of a call option increases, the price of the call option will However, as the length of the option period the call option price will increase. The call option price will decrease when the price of the underlying stock 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