Describe the effect of a change in each of the following factors on the value of a
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Describe the effect of a change in each of the following factors on the value of a call option:
(1) Stock price.
(2) Exercise price.
(3) Option life.
(4) Risk-free rate.
(5) Stock price variance, that is, riskiness of stock.
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Related Book For
Corporate Finance A Focused Approach
ISBN: 9780324180350
1st Edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
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