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The Factors that Affect the Value of An Option premium..

 There are 2 types of factors that affect the value of the option premium:
They are Quantifiable Factors and Non Quantifiable Factors..

Quantifiable Factors..
 *    Underlying stock price

 *    The strike price of the option

*     The time to expiration and

*     The volatility of the underlying stock

 *    The risk free interest rate


Non Quantifiable Factors..

 *    Market participants varying estimates of the underlying assets future volatility

 *    Individuals  varying estimates of future performance of the underlying asset, based on fundamental or technical analysis

 *    The effect of supply  and demand- both in the options marketplace and in the market for the underlying asset


 *    The depth of the market for that option - the number of transactions and the contract's trading volume on any given day.
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