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Assume an initial underlying stock price of $20, an exerciseprice of $20, a time to expiration of 3 months, a risk free rate of12% and a underlying stock return variance of 16%. If the risk freerate decreased to 6% and assuming other variables are heldconstant, the call option value wouldA) increaseB) remain the sameC) decreaseD) indeterminate from the information given
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