Question: C. Why do higher interest rates lead to higher call option prices but lower put option prices? (5 Marks) D. Suppose a European put price

C. Why do higher interest rates lead to higher call option prices but lower put option prices? (5 Marks) D. Suppose a European put price exceeds the value predicted by put-call parity. How could an investor profit? Demonstrate that your strategy is correct by constructing a payoff table showing the outcomes at expiration

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