Results from an increase in risk-free rate

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Reference no: EM131571852

1. Describe the effect on a call option’s price that results from an increase in "risk-free rate" and provide and example.

2. When identifying cash flows, depreciation is added to accounts receivable. added back to net income. subtracted from gross income. subtracted from total sales.

3. Example of a call option’s price that results from an increase in time to expiration.

Reference no: EM131571852

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