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Options Fair Market Value

It is the theoretical price of an option calculated with the help of Options pricing models.

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The fair market value also called the theoretical price of an option is calculated with the help of pricing models like Black Scholes Model and Binomial Model. The fair market value depends on many factors like the price of the underlying, volatility, expiration date, interest rate and strike price etc.

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List of all terms Ask your question

More Options Trading Terms / Definitions ...

  1. Algo Trading
  2. American Option
  3. Assignment in Options
  4. At-the-money (ATM)
  5. Bear Call Spread
  6. Box Spread
  7. Box Spread Strategy
  8. Break-Even Point (BEP)
  9. Bull Call Spread
  10. Call Option
  11. Cloud Order
  12. Delta Option Greek
  13. European Option
  14. Exercising Options
  15. Expiry
  16. Gamma Option Greek
  17. In-the-money (ITM)
  18. Index Options
  19. Long Option
  20. Long position
  21. Lot Size
  22. Mark-to-Market Settlement (MTM)
  23. Moving averages
  24. Open Interest (OI)
  25. Option Greeks
  26. Option Market Participants
  27. Option Tick Size
  28. Option Writer or Option writing
  29. Options Arbitrage
  30. Options Chart
  31. Options Contract
  32. Options Fair Market Value
  33. Options Hedging
  34. Options Market
  35. Options Premium
  36. Options Secondary Market
  37. Options Spread
  38. Options Trading App
  39. Options Writer
  40. Out-of-the-money (OTM)
  41. Over The Counter (OTC) Options
  42. Paired Option Contracts
  43. Post-market Trading Hours (Post Close Trading Session)
  44. Pre-Market Trading hours
  45. Put Option
  46. Rho Option Greek
  47. Short Option
  48. Spot Price
  49. Squaring Off an Option
  50. Strike price or exercise price
  51. Synthetic position
  52. Theta Option Greek
  53. Time decay or erosion
  54. Uncovered call writing
  55. Vega Option Greek
  56. vertical spread option strategy
  57. Volatility
  58. Volume in Options
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