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     EduGorilla 
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    Direction: Read the given information and answer the questions that follow.
    Stock price is INR 940 and a European Call option is struck at INR 1000 having expiration after 12 months and a value of INR 11.50. The annual continuously compounded interest rate is 6%.

    Everything being constant, if the interest rate gets increased to 6.7%, then what will be the impact on call price?

    Options :-

    1. No impact
    2. It will increase
    3. It will decrease
    4. It will become zero
    5. None of these
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Reply To: Direction: Read the given information and answer the questions that follow. Stock price is INR 940 ….
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