Which Option Price(s)will Increase When the Interest Rate Increases

question 6

Multiple Choice

Which option price(s) will increase when the interest rate increases?

• A)both the call and put
• B)call only
• C)put only
• D)neither the call nor the put
• E)Answer cannot be determined from the information provided.

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Definitions:

Psychosomatic

Pertaining to or involving both the mind and the body, especially relating to the influence of emotions and psychological factors in physical illness.

Neurological Disease

Disorders of the nervous system, including the brain, spinal cord, and nerves that may affect movement, cognition, and sensory perception.

Fidelity

The degree of accuracy and integrity with which a study, reproduction, or representation reflects the original subject or value.

Justice

The ethical principle concerned with fairness, equity, and impartiality in the allocation of resources and treatment of individuals.