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A contract that gives the owner the right, but not the obligation, to buy or sell a security at a fixed price in the future.
2
votes
Discrepancy between SPX and SPY call premiums
Some Factors in play:
(MOST IMPORTANT) Dividend yield, if there was no dividend on SPY call value would go up to about ~0.50 USD
Liquidity premium, if two assets are identical in every way except li …
4
votes
1
answer
561
views
Is This A Viable Alternative Options Pricing Method?
What I want to know is whether or not this method of pricing options is viable, or was the semi-successful calculation due to chance? … That value is the option price calculated by this method that seems to fit close with the price of options trading on exchange. …
2
votes
What does implied volatility means for different call and put strike prices?
Implied volatility will depend on the price the option is trading at. If more people buy a certain strike than another, or the given option is more difficult to hedge then the implied volatility will …