Mary you should definitely do some reason on what an option is...

Mary you should definitely do some reason on what an option is before purchasing. ETO's are high risk products, and company options are much the same.

The price of an option is derived from the stock price itself, mixed with variables such as time till expiry, volatility of the stock, risk free interest rates etc etc.

http://www.optiontradingpedia.com/call_options.htm