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All Else the Same, the Value of an American Call

Question 201

Multiple Choice

All else the same, the value of an American call option decreases __________________.


A) with increases in the underlying asset price
B) with decreases in the exercise price
C) with decreases in the risk-free interest rate
D) the less out-of-the-money the option becomes
E) with increases in the time to expiration

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