Valuation of options

In finance, a price (premium) is paid or received for purchasing or selling options. This article discusses the calculation of this premium in general.But for further detail, see Mathematical finance #Derivatives pricing: the Q world for discussion of the mathematics, and Financial modeling #Quantitative finance for the implementation. In finance, a price (premium) is paid or received for purchasing or selling options. This article discusses the calculation of this premium in general.But for further detail, see Mathematical finance #Derivatives pricing: the Q world for discussion of the mathematics, and Financial modeling #Quantitative finance for the implementation.