Question: Holding all else the same, the premium of a call option on common stock would decrease if: I. The price of the underlying stock increases.

Holding all else the same, the premium of a call option on common stock would decrease if: I. The price of the underlying stock increases. II. The volatility of the underlying stock increases. III. The time to expiration decreases.

a.

I and II only
b.

I only
c.

III only
d.

I and III only
e.

I, II, and III

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