Explore the critical role of volatility in options pricing for the Series 7 Exam. Learn how historical and implied volatility impact premiums and strategies, with examples and insights to enhance your understanding.
Explore how interest rates influence options pricing, focusing on the risk-free rate's effect on premiums, particularly for long-dated options. Understand the limited impact on most options and the role of interest rates in options valuation.
Explore how dividends influence options pricing, including strategies around ex-dividend dates and detailed calculations of their impact on option value.