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4 . You are planning to purchase a call option on the common stock of Company X . The price of the call option will

4. You are planning to purchase a call option on the common stock of Company X. The price of the call option will be higher, all else equal, if:
a. The option expires in two months rather than eight months
b. The risk-free rate is 3% rather than 5%
c. The standard deviation of returns for Company X is 0.200 rather than 0.500
d. The strike price is $40 rather than $30
e. The option expires in six months rather than three months

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