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According to the Black/Scholes Option Valuation Model, a Call Option's

Question 37

Multiple Choice

According to the Black/Scholes option valuation model, a call option's value increases if


A) stock prices increase and interest rates decrease
B) the time to expiration decreases and interest rates increase
C) the variability of the stock's return increases and stock prices increase
D) interest rates decrease and the variability of the stock's return increases

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