Holding every else equal, which of the following will cause the call option price to increase? You can use Black-Scholes formula to guide your intuition. O A The price of the underlying asset decreases O B. The time to maturity decreases O C. The volatility decrease OD. The strike price decreases Black-Scholes-Merton Model Assumptions: Stock price follows a Geometric Brownian motion: Continuous time, take the number of periods in binomial tree to infinity is the volatility of the underlying asset . Risk free portfolio earns continuous rate r: dBt rB.dt No transaction cost or trading constraint Call Price Where N) is the CDF of the standard normal distribution Put Price