Replying to @Mady Mills Financial Literacy options involve risk and are not for everyone, this is for educational purposes only. Here is part 2!!!! How does an options premium work? An options premium is made up of intrinsic value and extrinsic value. Which is: exercisable value, time value and implied volatility. An option is a derivative of a financial instrument but since it has an expiration date more things affect the price :) Ask your questions! #options101 #optionspremium #optionsforbeginners
What is an options premium? Part two of however many it takes to make you understand how options work. Understand the options premium. We are only...
