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Assume an initial underlying stock price of $20, an exercise price of $20, a time to expiration of 3 months, a risk free rate of

Assume an initial underlying stock price of $20, an exercise price of $20, a time to expiration of 3 months, a risk free rate of 12% and a underlying stock return variance of 16%. If the time to expiration decreased to 1 months and assuming other variables are held constant, the call option value would

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increase

remain the same

decrease

indeterminate from the information given

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