Value of put option interest rate. For put options, the opposite holds true, that is, the higher the interest rates the lower the put option price. This is because if interest rates are high you will have to hold the asset for a longer time to deliver it under the put option. Simply selling the asset and using the proceeds to invest at a higher rate would be a better option.

Value of put option interest rate

Fector affecting Options Price

Value of put option interest rate. By using call options investors save more money by not paying for the underlying until later date and earn higher interest meanwhile. When interest rates are higher put options prices are lower. when IR are higher opportunity costs of waiting is higher because investors lose more interest while waiting to  Interest Rate and Bonds with embedded options.

Value of put option interest rate


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