An option's price is determined by the amount paid by the buyer and received by the seller. This payment grants the buyer certain rights related to the option. These rights include the ability to buy or sell an underlying asset at a predetermined price, known as the strike price. The price of an option is influenced by various factors, such as the current market value of the underlying asset, the time remaining until the option expires, and the volatility of the market. Understanding the price of an option is crucial in the world of finance and investing.
