Which of the following increases the call option premium of an American option? O a. Decreases in prices of the underlying asset O b. Decreases in the maturity O c. Decreases in the dividend O d. Decreases in the risk free rate O e Decreases in the underlying asset volatility Use the following three statements to answer this question: 1. Assuming PAB = 1 or PAB = -1, assuming further we know the increases of Security A, we can predict the movement of Security B with certainty. II. Generally, security returns display positive correlations with one another but they are less than one, because all securities tend not to follow the movements of the overall market. III. Any value of correlation less than +1 provides a possibility of diversification. a. Only Il is correct O b. Only Illas correct O C. Only II and III are correct Od. Only I and II are correct O. Only I and III are correct