The following table shows how increases in the given factors on the left affect the value of a call option. For each factor, indicate whether an increase in its value causes the value of the call option to increase or to decrease. When is a call option considered to be in-the-money? When the exercise price exceeds the current stock price. When the exercise price is below the current stock price. trading at $43 per share and has a 50% chance of increasing to $50 per share and a 50% chance of falling to $40 per share. Laurenz also bought a similar call option for Company B, whose stock was trading at $35 per share with the same exercise price and expiration date. Company B's stock has a 50% chance of increasing to $65 per share and a 50% chance of falling to $25 per share. If all other things are the same, who is likely to pay more for the option? Carmen Laurenz This is true because the the volatility in the expected stock price of the underlying stock, the the value of the call option