An increase in which of the following will increase the value of an American call option? 1. Dividend payments of the underlying asset 2. Rate of risk-free asset 3. Time to expiration 4. Variance of the return on the underlying asset O a. 2, 3, 4 are correct O b. 1, 2, 3 are correct C. 1, 2, 4 are correct O d. All are correct O e. 1, 3, 4 are correct Hui Tan has borrowed $25,000 from his local bank. The loan will cost him 12% per year for the first 7 years and 4% per year for the next 15 years. The interest is compounded annually. At the end of the 22 years, the amount he will have to repay is closest to: Oa $302,507.75 O b. $135,913.51 Oc. $50,145.31 Od. $100,290.62 Oe. $99,532.81