(Solution) - Which of the following events are likely to increase the -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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Pages: 5 Words: 1375

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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