Black-Scholes Option Valuation

Marissa is analyzing a European call option on a non-dividend paying stock using the Black-Scholes model. The stock is currently priced at $50, the strike price of the option is $55, the time to expiration is 1 year, the risk-free interest rate is 4%, and the stock's volatility is estimated at 25%. Using the Black-Scholes formula, Marissa calculates the option's theoretical price and wants to understand how changes in the inputs affect the option's pricing.

Which of the following statements is true regarding the Black-Scholes model as applied to this scenario?