A Longer Time to Maturity Will Unambiguously Increase the Value

A longer time to maturity will unambiguously increase the value of a call option because __________.
I.the longer maturity time reduces the effect of a dividend on call price
II.with a longer time to maturity the present value of the exercise price falls
III.with a longer time to maturity the range of possible stock prices at expiration increases

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

Correct Answer:

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