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Given are the following statements: I. An increase in the maturity increases the value of the option to defer a project (ceteris paribus) II. An

Given are the following statements:

I. An increase in the maturity increases the value of the option to defer a project (ceteris paribus)

II. An increase in the volatility decreases the value of the option to defer a project (ceteris paribus)

Assume that these changes do not affect the underlying value.

Only statement I is true

Neither of the statements are true

Both statements are true

Only statement II is true

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