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YAFT: American Put Option Price

Originally posted by: DVK916
How would I determin the expected value of having an american put option, and thius the price of it.
Click to expand...

What do you mean "determine the value"

Option prices are computed using two things - economics and time. You can project an expected value if you have a strike price and a timespan in mind to an extent.

After going in the money, option prices increase dollar for dollar against the stock.
 
Originally posted by: PAB
Originally posted by: DVK916
How would I determin the expected value of having an american put option, and thius the price of it.
Click to expand...

What do you mean "determine the value"

Option prices are computed using two things - economics and time.
Click to expand...

They are computed using a formula, I need that formula.

 
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