Which of the following events are likely to increase the market value of a call option on

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Which of the following events are likely to increase the market value of a call option on a common stock? Explain.
a. An increase in the stock's price
b. An increase in the volatility of the stock price
c. An increase in the risk-free rate
d. A decrease in the time until the option expires
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Fundamentals of Financial Management

ISBN: 978-1285867977

14th edition

Authors: Eugene F. Brigham, Joel F. Houston

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