The value of a European call decreases when:

1. the dividend paid by the underlying stock increases

2. the stock price increase

3. The risk-free rate of return increases

4.The volatility of the price of the underlying stock increases

A) Only 1 is correct

B) Both 1 and 4 are correct

C) Both 2 and 4 are correct

D) Both 1 and 3 are correct

E) Both 2 and 3 are correct