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What properties and/or attributes increase an option’s excess premium?

What properties and/or attributes increase an option’s excess premium?

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Answer #1

The premium increases depending upon the call option/put option:

For a Call option, there is an increase in premium with an increase in:
1. Underlying asset price.
2. Time to Expiration
3. Volatility of the Underlying.


For a Put option, there is an increase in premium with an increase in:
1. Stike price
2. Time to Expiration.
3. Volatility of the Underlying.

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