Call options are a type of option that increases in value when a stock rises. They’re the best-known kind of option, and they allow the owner to lock in a price to buy a specific stock by a specific ...

Discover how Vega affects options pricing by measuring sensitivity to volatility changes. Learn its impact on trading strategies with clear examples and key takeaways.

Option pricing is calculated using the Black-Scholes model, which takes four influential factors into account: the price of an underlying stock (assuming constant drift and volatility), an option’s ...