According to the Black/Scholes option valuation model, the value of a call option rises as interest rates increase.

Name: According to the Black/Scholes option valuation model, the value of a call option rises as interest rates increase.
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In the Black/Scholes model, the value of a call option is positively related to the risk-free interest rate. As interest rates increase, the present value of the strike price (which is a cost) decreases, making the call option more valuable.

According to the Black/Scholes Option Valuation Model, the Value of a Call