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The value of a European call decreases when: 1. the dividend paid by the underlying stock increases. II. the stock price increases. III. the risk-free

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The value of a European call decreases when: 1. the dividend paid by the underlying stock increases. II. the stock price increases. III. the risk-free rate of return increases. IV. the volatility of the price of the underlying stock increases a. Only 1 is correct. O b. Both I and IV are correct O c. Both Il an IV are correct O d. Both I and III are correct O e. Both II and III are correct

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