Holding everything else constant,call options are more expensive in periods of high interest rates.

Name: Holding everything else constant,call options are more expensive in periods of high interest rates.
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Question

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In periods of high interest rates, the opportunity cost of holding onto a call option is greater, as investors could earn higher returns by investing in alternative higher-yielding assets. This increases the demand for the call option, driving up its price.

Holding Everything Else Constant,call Options Are More Expensive in Periods