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The value of a call option increases when (Assume other factors keeps constant) 1. Strike price increases 2. Standard deviation of the underlying asset increases
The value of a call option increases when (Assume other factors keeps constant) 1. Strike price increases 2. Standard deviation of the underlying asset increases 3. The risk-free rate increases 4. The dividend rate of the undertying asset increases a 1 and 2 b. 2 and 4 C2 and 3 d. 2. 3, and 4 1. 2. and 4
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