Stock Option Pricing - 2 Main Components, Intrinsic Value & Extrinsic Value. The price of an option contract, or sometimes known as the option premium, consists of 2 main components : Intrinsic Value and Extrinsic Value, governed by the principle of Put Call Parity.
US oil settles down $1.75, or 5.28%, at $31.41 a barrel. A brutal new year selloff in oil markets deepened on Monday, with prices plunging more than 6 percent to new 12-year lows as further ructions in the Chinese stock market threatened to knock crude into the $20s.
Fifty percent of the time prices U.S. and world prices were below the median oil price of $24.58 per barrel. If long-term history is a guide, those in the upstream segment of the crude oil industry should structure their business to be able to operate with a profit, below $24.58 per barrel half of the time.n the post World War II era, U.S. oil prices at the wellhead averaged $28.52 per barrel adjusted for inflation to 2010 dollars. In the absence of price controls, the U.S. price would have tracked the world price averaging near $30.54.