Which one of the following would tend to result in a high value of a call option?

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Which one of the following would tend to result in a high value of a call option?

a. Interest rates are low.

b. The variability of the underlying stock is high.

c. There is little time remaining until the option expires.

d. The exercise price is high relative to the stock price.

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Fundamentals Of Investments Valuation And Management

ISBN: 9781266824012

10th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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