Factors Affecting the Value of a Call


From the Black/Scholes formula:

  1. the value of the underlying asset, S
  2. the risk-free rate of interest, r
  3. the time to maturity, T
  4. the exercise price, X
  5. the volatility of the price of the underlying asset


In other words C = C(S,r,T,X,volatility)


How does each of these factors affect call value?

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