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21. Which of the following is true regarding option pricing: a. the less risk-free interest rate, the higher the premium. b. the more volatile the

21. Which of the following is true regarding option pricing:

a. the less risk-free interest rate, the higher the premium.

b. the more volatile the underlying stock, the lower the premium.

c. the higher strike price, the higher the premium.

d. the shorter the maturity of the option, the lower the premium.

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