If the underlying stock price increases by $1 and if there is still time to expiry, price of a call option on the stock will increase O A. By less than $1 B. By more than $1+r, where r denotes the risk-free interest rate. OC. By 1$ OD. By more than $1 but less than $1+r, where r denotes the risk-free interest rate. Consider the CAPM model. Suppose that the risk-free rate is rf=2%, the expected return on the market is E[MM= 10%. A stock analyst has forecasted that Exxon Mobil (XOM) will have an actual return of 16%. Further, assume that beta of XOM is B xom = 2. What is the alpha of Exxon Mobil (axom) according to this forecast? O A. -2% OB.2% C. 0% OD. -4% E. 4%