According to the Black-Scholes model, when the variance of the underlying asset decreases, it results in a decrease in the value of a call option.

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In the Black-Scholes model, the value of a call option is positively related to the volatility (variance) of the underlying asset. Therefore, if the variance decreases, the value of the call option decreases.

According to the Black-Scholes Model, When the Variance of the Underlying