Call / put options question.
Hey guys, I have a very specific question.
Call options increase as interest rates rise, this is for the buyer of the call right? (Right to call, and invest in higher rate)
Call options decrease as interest rates rises, this is for the seller right? (The need to sell and reinvest in lower rates is opposite of rising rates)
Why is put options decreases as interest rates decline wrong? I would think the put option decreases as int rates decline because the need to sell for cash decreases as the reinvestment rate is also decreasing?.
if that makes sense.... |