Describe the effect on a call options price caused by an increase in each of the following

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Describe the effect on a call option’s price caused by an increase in each of the following factors:

(1) Stock price,

(2) Exercise price,

(3) Time to expiration,

(4) Risk-free rate, and

(5) Variance of stock return.

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Financial management theory and practice

ISBN: 978-0324422696

12th Edition

Authors: Eugene F. Brigham and Michael C. Ehrhardt

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Question Posted: Mar 17, 2010 01:08 AM

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Describe the effect on a call options price caused by an increase in each of the following

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Financial management theory and practice

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