Having a call option means purchases can be deferred. Hence when interest rates are high, the call option becomes more valuable as money left in the bank earns more interest.
How would this work in the case of a put option?
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Black Scholes
7y ago#1A put option means that sales (and cash receipts) can be deferred. If interest rates are high, this means deferring earning more interest. Therefore, I think the option must become less valuable as interest rates rise.
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