A stock trades for

$46

per share. A call option on that stock has a strike price of

$53

and an expiration date

twelve

months in the future. When the volatility of thestock's returns is 30%, the Black and Scholes value of the option is $3.82. Now assume, the volatility of the stock's returns is

55%,

and the risk-free rate is

4%.

Intuitively, would you expect this to cause the call price to rise or fall? By how much does the call price change?