Investing in financial products involves risk to your capital.

Close Navigation
Learn more about IBKR accounts

Theoretical Option Pricing Model

Trading Term

A formula that can be used to calculate a theoretical value for an option using current stock prices, expected dividends, the option's strike price, expected interest rates, time to expiration and expected stock volatility.

This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.