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Which of the Following Will Decrease the Value of a Call

Question 97

Multiple Choice

Which of the following will decrease the value of a call option?
I.a decrease in the exercise price
II.a decrease in the value of the underlying security
III.an increase in the risk-free rate
IV.an increase in the time to expiration


A) II only
B) I and II only
C) III and IV only
D) I, II, and IV only
E) I, II, and III only

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