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Volatility of the underlying asset: the more volatile the underlying asset, the more volatile the option
The structure of the interest rate: options are linked with the interest rate in the economy
The cash flow associated with the underlying: for a call option buyer to give up his right to deliver, he has to be paid a call premium. In the same way, a put option buyer has to be paid a put premium
Dana05 answered the question on July 15, 2019 at 15:18
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