📊 Option Premium Calculator

Calculate option premium using Black-Scholes model.

Understanding Option Premium

Option premium is the price paid by the buyer to the seller for an options contract. It's calculated using the Black-Scholes model which considers spot price, strike price, time, volatility, and risk-free rate.

Factors Affecting Premium

  • Spot Price vs Strike Price: Intrinsic value of option
  • Time to Expiry: More time = higher premium
  • Volatility: Higher volatility = higher premium
  • Interest Rates: Affects present value calculations
Note: This calculator provides theoretical prices. Actual market prices may vary due to demand-supply dynamics.