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Contained below is a list of possible movements in factors that affect option pricing. Using a to represent an increase in the value of the
Contained below is a list of possible movements in factors that affect option pricing.
Using a to represent an increase in the value of the option and to represent a decrease in the value of an option all else being equal.
| Call Option Value | Put Option Value |
A decrease in the current spot currency price.
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A decrease in the exercise price of the option.
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A decrease in market volatility
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A decrease in the term to maturity of an American Option
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An increase in the risk-free rate
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