his morning, a Canadian dollar call option contract has a $$0\mathrm{.}71$ strike price, a premium of $$0\mathrm{.}08,$ and expiration date of one month from now. This afternoon, news about international economic conditions increased the level of uncertainty surrounding the Canadian dollar. However, the spot rate of the Canadian dollar was still $$0\mathrm{.}71.$ Would the premium of the call option contract be higher than, lower than, or equal to $$0\mathrm{.}08$ this afternoon?

The premium will be $-$Select$-$higher thanlower thanequal toItem $1$ $$0\mathrm{.}08.$ The call option premium is $-$Select$-$positively relatednegatively relatednot relatedItem $2$ to expected volatility and when uncertainty surrounding the exchange rate increases, the expected volatility $-$Select$-$increasesdecreasesremains the sameItem $3.$