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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Corporate Finance A Focused Approach

ISBN: 9780324180350

1st Edition

Authors: Michael C. Ehrhardt, Eugene F. Brigham

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