= Valuation of options
{wiki=Valuation_of_options}
Valuation of options refers to the process of determining the fair value or price of an options contract. Options are financial derivatives that give the holder the right, but not the obligation, to buy (call option) or sell (put option) an underlying asset at a specified price (the strike price) within a specified time period (until the expiration date). There are several methods and models used to value options, with the most common being: \#\#\# 1.
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