will lead to an increase in the 14. Keeping other variables constant, increase in call option value. A) the time to maturity of the option contract B) the volatility of the underlying asset price in the option contract C the strike price of the option contract b) Both A and B. 15. Which of the following statement is correct? A) The current account is divided into the following finer categories: factor income, foreign direct investment, and unilateral transfers. B) When the balance-of-payments accounts are recorded correctly, the combined balance of the current account, the capital account, and the reserves account must be zero. C) Generally speaking, any transaction that results in a payment to foreigners will be recorded as a credit, with a positive sign, in the U.S. balance of payments D) The capital account may be divided into three categories: foreign direct investment, portfolio investment, and merchandise trade