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Which of the following statements is false regarding the effect of a change in interest rates on options prices ( assuming all other variables are
Which of the following statements is false regarding the effect of a change in interest rates on options prices assuming all other variables are held constant
a an increase in interest rates will make call options more valuable
b an increase in interest rates will be favorable to someone who is short a put
option
c an increase in interest rates will make call and put prices less valuable because of its effect on the present value of the underlying price
d a decrease in interest rates makes call options more valuable
e a decrease in interest rates makes put options more valuable
f a&e
g c & d
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