Assuming all else equal,the value of an in-the-money call increases when the I.time to expiration increases.
II)stock price increases.
III)risk-free rate of return increases.
IV)volatility of the price of the underlying stock increases.

Question

Quizplus · Accepted Answer

The value of an in-the-money call option increases with time to expiration due to the time value of money, with an increase in the stock price since the option becomes more valuable, with an increase in the risk-free rate of return as it raises the present value of the expected payoff, and with an increase in volatility since higher volatility increases the potential for the stock to move above the strike price.

Assuming All Else Equal,the Value of an In-The-Money Call Increases