21. Holding all else equal, why does an option on a stock with high volatility have more value than an option on a stock with low volatility? A. Volatility increases interest rates, which lower option values B. Options on high volatility stocks always have a longer time to expiration C. The Black-Scholes model does not have a solution for stocks with low volatility D. High volatility stocks have a greater probability of going in-the-money of an option than do low volatility stocks E. None of the above 22. Which of the following are true? A. If interest rates increase, they increase the value of a call option B. If interest rates increase, they decrease the value of a call option C. If interest rates increase, they increase the value of a put option D. Both B and C E. None of the above