What Happens to the Value of Call and Put Options

question 46

Multiple Choice

What happens to the value of call and put options, with everything else held constant, if the risk-free interest rate increases?

• A) Call options will be worth more, put options will be worth less.
• B) Call options will be worth less, put options will be worth more.
• C) Both call and put options will be worth less.
• D) Both call and put options will be worth more.

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