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Assuming All Else Equal,the Value of an In-The-Money Call Increases

Question 22

Multiple Choice

Assuming all else equal,the value of an in-the-money call increases when the I.time to expiration increases.
II) stock price increases.
III) risk-free rate of return increases.
IV) volatility of the price of the underlying stock increases.


A) I and III only
B) II,III,and IV only
C) I,III,and IV only
D) I,II,and III only
E) I,II,III,and IV

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