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Which One of the Following Will Decrease the Value of an American

Question 26

Multiple Choice
Which one of the following will decrease the value of an American call option?

Which one of the following will decrease the value of an American call option?


A) A decrease in the price volatility of the underlying asset
B) An increase in time to expiration
C) An increase in the underlying stock price
D) A decrease in the exercise price
E) An increase in the risk-free rate of return

Correct Answer:

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