Analysis of Key Ratios in Pricing Models of Options
De Wang · Journal of Hunan University · 2003
One of the approaches to evaluate the price of options is to analyse the parameters in the pricing models of options. The time decay factor Theta value, the change ratios Vega value and Rho value based on the researches of the listing references were analysed deeply. In addition, some conclusions about Phi value and Tau value were firstly presented, which relate the change of options price to the change of dividend and the change of exercise price respectively. To some extent, these conclusions increase the accuracy to use the pricing models of options and the ability for us to make options exchange decisions to resist risks.