In the Black-Scholes Option Pricing Model, an Increase in the Risk-Free

question 88

Multiple Choice

In the Black-Scholes option pricing model, an increase in the risk-free rate (RFR) will cause

• A) In the Black-Scholes option pricing model, an increase in the risk-free rate (RFR) will cause
• B) an increase in call value and a decrease in put value.
• C) a decrease in call value and an increase in put value.
• D) a decrease in call value and a decrease in put value.
• E) an increase in call value and an increase or decrease in put value.

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