As we all know, options can be divided into three types according to their intrinsic value: flat value, imaginary value and real value. On the premise that the underlying assets have the same increase, options with different intrinsic values have different increases. So which option has the biggest increase?

Which option, flat value, imaginary value and real value, has the biggest increase?

When the price of the subject matter is fixed, the price of the virtual option is the largest. First of all, the fluctuation of the subject matter will affect the intrinsic value of the option. The fluctuation of the subject matter has the same amount of change to the intrinsic value of each exercise price option, but the price of the virtual option is the lowest, so from the fluctuation range, the fluctuation range of the virtual option will be significantly higher.

The higher the leverage of the option, the greater the fluctuation range. The leverage of options is divided into cost leverage and income leverage:

1 cost leverage: option cost leverage = current price of the underlying asset/royalty. Option represents the right to buy and sell an asset, and investors need to pay royalties to get the option, which is relatively low relative to the underlying asset, so investors can pry the underlying object at a higher price with less cost.

2 Income leverage: the income leverage of the option = the ratio of the percentage change rate of the option price/the percentage change rate of the underlying asset price.