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Holding all else equal, the premium of a call option on common stock will increase if: I. The price of the underlying goes up II.

Holding all else equal, the premium of a call option on common stock will increase if:

I. The price of the underlying goes up

II. The volatility of the underlying goes up

III. The time to expiration gets shorter

a. Only I is true b. Only II is true c. Only III is true d. Only I and II are true e. I, II, and III are true

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