Select an option above to see an explanation here.

A) Interest rates impact options prices inversely for calls and directly for puts.
B) This is incorrect. In the Black-Scholes model, interest rates directly affect call options prices and inversely affect put options prices.
C) This is incorrect. A decrease in interest rates will decrease the price of call options and increase the price of put options.
D) This is incorrect. A rise in interest rates will increase the price of call options and decrease the price of put options.