FAQ About Option Prices – Option Investment Loss FINRA Arbitration and Litigation Attorney:

The option price is the market price at which an option contract is trading at any given time.  The price of an option on a stock reflects the fact that it covers 100 shares of the common stock.  For example, an option that is quoted at $10 would cost $1,000, because it would be an option for 100 shares of stock at $10.  The option price is determined by many factors, including its intrinsic value, time to expiration, volatility of the underlying stock, interest rates, dividends, and marketplace adjustments for supply and demand.  Options on indices, debt instruments, currencies and commodities also have prices determined by many of the same factors.

Please keep in mind that the above information is being provided for educational purposes only.  Thus, it is not designed to be complete in all material respects.  It should not be relied upon as legal or investment advice.  If the reader has any questions about the contents of this post, you should consult a qualified professional.

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At the Fort Lauderdale Law Office of Russell L. Forkey, we represent clients throughout South and Central Florida, including Fort Lauderdale, West Palm Beach, Boca Raton, Sunrise, Plantation, Coral Springs, Deerfield Beach, Pompano Beach, Delray, Boynton Beach, Hollywood, Lake Worth, Royal Palm Beach, Manalapan, Jupiter, Gulf Stream, Wellington, Fort Pierce, Stuart, Palm City, Jupiter, Miami, Orlando, Maitland, Winter Park, Altamonte Springs, Lake Mary, Heathrow, Melbourne, Palm Bay, Cocoa Beach, Vero Beach, Daytona Beach, Deland, New Smyrna Beach, Ormand Beach, Broward County, Palm Beach County, Dade County, Orange County, Seminole County, Martin County, Brevard County, Indian River County, Volusia County and Monroe County, Florida. The law office of Russell L. Forkey also represents South American, Canadian and other foreign residents that do business with U.S. financial institutions, investment advisors, brokerage and precious metal firms.