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For Call Options,the Positive Relationship Between Price and Time Is

Question 17

Multiple Choice

For call options,the positive relationship between price and time is


A) Because the longer the time period the more volatility in the stock price
B) Caused by an increasing intrinsic value due to lower present values of the exercise price for longer time periods
C) Related to the opportunity to have more time to take advantage of the fluctuations in the price of the stock
D) Related to the fact that you can use the riskless rate of interest to leverage your gains

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