Question: 1. Other things equal, when an option first becomes available in the market, a) its time value will be at its highest b) its time

1. Other things equal, when an option first becomes available in the market,

a) its time value will be at its highest

b) its time value will increase as the call approaches its expiration date

c) the volatility of the stock is negatively related to the value of the call option

d) if it is out of the money, it will have no time value

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