An increase in which of the following would increase the time value of call option on common stock, ceteris paribus? Stock price Stock price volatility Time to expiration Exercise price II only II and IV only II and III only I, III and IV only Bank of Rochester has funded variable-rate assets with fixed-rate liabilities at 7 percent. The bank's variable-rate assets cam LIBOR + 2 percent. OU Credit Union has funded 9 percent fixed-rate assets with variable-rate liabilities at LIBOR + 2 percent. The bank and the thrift have reached agreement on an interest-rate swap with the fixed-rate swap payment at 6 percent and the variable-rate swap payment at LIBOR. Bank of Rochester can lock in a profitable spread of and OU Credit Union can lock in a profitable spread of 1% and 2% 2% and LIBOR LIBOR and 1% 2% and 1% 1% and 1% A bank wishes to hedge its $30 million face value bond portfolio (currently priced at 99% of par). The bond portfolio has a duration of 9.75 years. They will hedge with T-Bond futures ($100,000 face) priced at 98% of par. The duration of the T-Bonds to be delivered is 9 years. How many contracts are needed to hedge? Should the contracts be bought or sold? Ignore basis risk. 328 contracts should be bought 328 contracts should be sold 325 contracts should be bought 325 contracts should be sold Can't decide because of lack of sufficient information If the exchange rate increased from 1.2326$/euro to l.2859$/euro, the dollar has depreciated, and the euro has depreciated the dollar has appreciated, and the euro has appreciated the dollar has appreciated, and the euro has depreciated the dollar has deprecated, and the euro has appreciated