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Which of the following statements concerning call option premiums is correct? 1. The greater the volatility of the underlying stockhs price, the higher the premium.

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Which of the following statements concerning call option premiums is correct? 1. The greater the volatility of the underlying stockhs price, the higher the premium. II. The higher the stocks existing price relative to the exercise price, the lower the premium. o Ill. The longer the term to the expiration, the higher the premium. Oll and Ill are correct I and I are correct o I and III are correct oll and Ill are incorrect

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