Question: A longer time to maturity will unambiguously increase the value of a call option because: The longer maturity time reduces the effect of a dividend
A longer time to maturity will unambiguously increase the value of a call option because:
The longer maturity time reduces the effect of a dividend on call price.
With a longer time to maturity the present value of the exercise price falls.
With a longer time to maturity the range of possible stock prices at expiration increases.
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