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Hi Wayne,Thanks for the detailed reply.So the risk premium is a combination of this:Current share priceStrike priceTime till expiryRisk free interest ratesDividendsVolatilityHave I understood this?
Hi Wayne,
Thanks for the detailed reply.
So the risk premium is a combination of this:
Current share price
Strike price
Time till expiry
Risk free interest rates
Dividends
Volatility
Have I understood this?
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