Adam Smith is a portfolio manager with Point72 Investments, a U.S.-based asset management firm. Smith is considering using options to enhance portfolio returns and control risk. He asks his junior analyst, Tommy Lee, to help him. Lee collected and summarize the relationship between a European call option and various factors that might impact the call option value in Table 1. Which of the relationships shown in Table 1 below is incorrect? (Choose the best answer)

Table 1 Impact of Increasing the Variables on put option value Variables Impact on put option value

Stock price Decrease Strike Price Decrease Maturity Increase Volatility Increase Interest rate Decrease Dividend Increase

Volatility and Stock Price Risk-free rate and Volatility Dividend and stock price Maturity and Strike Price Stock Price and Interest Rate