The Analytical Examination of the Impacts of Time – Varying Parameters on Call Option Prices for Capital Market Using Black-Scholes Model

Key Points

• Call option prices are directly influenced by time-varying parameters, leading to substantial variations.
• The analysis revealed that an increase in volatility can lead to higher call option prices, significantly affecting investment strategies.
• Utilizing the Black-Scholes model enhances the understanding of market parameters on option pricing.
• The findings may indicate a need for refined pricing models to better cater to time-sensitive market changes.