An increase in value of option leads to low present value of exercise cost only if it has Options: A . &nbsplow volatility B . &nbspinterest rates are high C . &nbspinterest rates are low D . &nbsphigh volatility

An increase in value of option leads to low present value of exercise cost only

Question

An increase in value of option leads to low present value of exercise cost only if it has

Options:

A . low volatility

B . interest rates are high

C . interest rates are low

D . high volatility

Answer: Option B
Answer: (b).interest rates are high

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