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Which of the following statements regarding option pricing is CORRECT? A) Option price is negatively related to the volatility of the underlying asset. B) The

Which of the following statements regarding option pricing is CORRECT?

A) Option price is negatively related to the volatility of the underlying asset.

B) The expected return of the underlying asset is a key determinant of option price.

C) The price of an out-of-the-money call option is equal to the intrinsic value

D) In a risk neutral world, investors require a standard positive risk premium on all kinds of risky investment.

E) An American option is worth at least as much as a European option.

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