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Which of the following will increase the value of a real (call) option? A decrease in the risk-free rate An increase in the cost of

Which of the following will increase the value of a real (call) option?

A decrease in the risk-free rate

An increase in the cost of obtaining the real option

Shortening the time in which a real option must be exercised.

None of these will increase the value of a real call option.

A decrease in the volatility of the underlying source of risk.

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