Keeping other factors constant, if the spot price goes up then premium for call goes up but premium for put goes down.
What is effect of strike Price ?
Keeping the spot price constant, if the strike price increases then for calls the premium decreases and for puts the premium increases.
What is effect of volatility on premium ?
The effect of volatility is similar on call and put premium. Premium increases with volatility. Along with the volatility, the risk of the option seller increases, so he increases premium.
What is effect of Time Left to expiry?
This factor also affects both call and put option premiums similarly. Long expirations means, more chances of variations in price. Hence higher premiums for both calls and puts for longer options.
What is effect of Interest rates ?
Higher interest means higher premium for calls and higher interest means lower premiums for puts.
What is effect of strike Price ?
Keeping the spot price constant, if the strike price increases then for calls the premium decreases and for puts the premium increases.
What is effect of volatility on premium ?
The effect of volatility is similar on call and put premium. Premium increases with volatility. Along with the volatility, the risk of the option seller increases, so he increases premium.
What is effect of Time Left to expiry?
This factor also affects both call and put option premiums similarly. Long expirations means, more chances of variations in price. Hence higher premiums for both calls and puts for longer options.
What is effect of Interest rates ?
Higher interest means higher premium for calls and higher interest means lower premiums for puts.