In options pricing, the hypothetical value of an option as calculated by the Black-Scholes Option Pricing Model.
THEORETICAL PRICE This is the mathematically calculated value of an option. It is determined by (1) the strike price of the option, (2) the current price of the underlying, (3) the amount of time until expiration, (4) the volatility of the underlying, and (5) the current interest rate. OptionVue 5 has a theoretical price (Th.Pr) for each option in the Matrix.
An option value generated by a mathematical option's pricing model to determine what an option is really worth.
The value of an option as calculated by a mathematical model based on a number of variables such as price of the underlying security, volatility, interest rates and time to expiry.
An estimated value of an option derived from a mathematical model, such as the Black-Scholes formula.
Applies to derivative products. Mathematically determined value of a derivative instrument as dictated by a pricing model such as the Black-Scholes model.
The value of an option according to a mathematical model.
The fair value premium of an option based on recognised pricing methods.
An option value generated by a mathematical model, given certain prior assumptions about the terms of the option, the characteristics of the underlying security, and prevailing interest rates.
The price of an option, or a spread, as computed by a mathematical model.
The estimated value of an option derived from a mathematical model. SEE ALSO BLA...
In the absence of actual market values, the value of stock offered under a pre-emptive privilege, which is determined by (1) subtracting the price of the new stock from the price of the old stock (cum-rights), and (2) dividing the difference by the number of rights needed to subscribe to one new share plus an additional right.
(Fair value) - The price an option is "worth", based on a mathematical calculation and some assumptions. In the real world, the actual price usually differs from the price calculated as 'fair'.
The price of an option as computed by a mathematical model, which processes past data, present characteristics of the commodity, and market conditions.
Transfer risk Transferable Stock Options