tango_gs

hold on….just wanted to clarify….the call option detracts from the value of an option free bond….so in that case with an increase in yields…wouldnt the call option always be less than the option free?…and with a decrease in yields the option with the put will always be higher than the option free bond (since the value of a putable bond is more than the value of an option free bond)…the put option shouldn’t ever detract from the value of the bond….so it should always be HIGHER than a similar option free bond…and a call option should always be lower than a similiar option free bond.
could someone please confirm this?