I have read that the price of an option is not affected by the drift of the stock since the drift term doesn't appear in the Black Scholes PDE. I become confused because to me, this implies that the future value of the stock does not affect the value of the option, so why should the current value of the stock affect the option price?

  • $\begingroup$ Your previous and almost identical question quant.stackexchange.com/questions/43778 was closed as off topic for being too basic. Re-posting it doesn't change that. $\endgroup$ – LocalVolatility Jan 31 '19 at 23:08
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    $\begingroup$ Downvote for being to basic. Try to look up 'risk-neutral valuation' $\endgroup$ – Sanjay Jan 31 '19 at 23:33
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    $\begingroup$ Similar question quant.stackexchange.com/questions/8247/… $\endgroup$ – user23564 Feb 1 '19 at 0:48
  • $\begingroup$ Where can I post then so that I can have help understanding why. And if it is basic, shouldn’t it tend itself to a quick and long easy answer to formulate? $\endgroup$ – math111 Feb 1 '19 at 1:02
  • $\begingroup$ In any case as user23564 pointed out it's already been answered $\endgroup$ – Lliane Feb 1 '19 at 2:09