Option Price and Interest Rates suppose the interest rate on T-bills suddenly and unexpectedly rises. All other

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Option Price and Interest Rates suppose the interest rate on T-bills suddenly and unexpectedly rises. All other things being the same, what is the impact on call option values? On put option values?

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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th Edition

Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan

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Question Posted: May 03, 2011 03:29 AM

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Suppose the interest rate on T-bills suddenly and unexpectedly rises. All other things being the same, what is the impact on call option values? On put option values?
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Option Price and Interest Rates suppose the interest rate on T-bills suddenly and unexpectedly rises. All other

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