Question: 4 . You are planning to purchase a call option on the common stock of Company X . The price of the call option will
You are planning to purchase a call option on the common stock of Company X The price of the call option will be higher, all else equal, if:
a The option expires in two months rather than eight months
b The riskfree rate is rather than
c The standard deviation of returns for Company X is rather than
d The strike price is $ rather than $
e The option expires in six months rather than three months
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