In the valuation of an option contract, the following statements apply except
A) the value of an option increases with its maturity.
B) there is a negative relationship between the market interest rate and the value of a call option.
C) the value of a call option is negatively related to its exercise price.
D) the value of a call option is positively related to the volatility of the underlying asset.
E) the value of a call option is positively related to the price of the underlying stock.
Correct Answer:
Verified
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