Factors determining the price of financial options

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The factors determining the prices of financial options could be the following:

  • The difference between exercise price and current share price: the more the option is in the money, the higher the price, the more the option is out of the money, the lower the price, namely, if the exercise price is higher than the current share price the value of the option is very little – the option is out of the money. Viceversa, if the current price is much higher than the exercise price of the option, the value of the option is in the money and it increases.
  • The volatility: if the share price is very volatile, probably the option will be more expensive to buy or sell.
  • Time to expiry: the longer the option life is, the higher its price due to the time value for money.

When in an equity market the call option is much in the money,we say that the put option is out of the money, as the current price is much higher than the exercise price. For this reason, it is fair if the call option is more expensive than the put option. On the other hand, when in an equity market the opposite happens, the put option is much in the money whereas the call option is out of the money. Consequently, the put option will be more expensive than the call option.

Rethinking the Adaptive Leadership model through the Italian Adaptive Leadership Behavior Questionnaire

Since Heifetz designed the adaptive leadership framework in 1994, the academic literature has benefitted from many qualitative research studies focusing on specific adaptive challenges and how the adaptive leadership framework can be practically used to face these. It seems very few have dealt with adaptive leadership through the quantitative lens and have attempted to measure adaptive leadership behaviors or tested Heifetz’s adaptive leadership six-dimensional model. In response, my PhD research aimed to measure the perception of adaptive leadership behaviors across the Italian corporate context and to investigate whether Heifetz’s adaptive leadership model can apply to the Italian culture. Findings and contribution to knowledge can be read in the thesis: Novellini, P. (2023) Rethinking the Adaptive Leadership model through the Italian Adaptive Leadership Behavior Questionnaire, PhD thesis, University of Sunderland.

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Novellini - Hall Italian Adaptive Leadership Behavior Questionnaire

Do you want to measure the perception of adaptive leadership within your company or team? You can use 'Novellini - Hall Adaptive Leadership Behaviour Questionnaire', a new tool in the literature of leadership. This questionnaire was designed especially to be used in the business environment with a perspective on the higher level figures in the hierarchy. However, you can use it in any type of environment and at any level by adapting the terminology to the reality you want to focus on.

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