Question: Describe the effect on a call options price caused by an increase in each of the following factors: (1) Stock price, (2) Exercise price, (3)

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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