1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Anastasy [175]
1 year ago
10

In the black-scholes option pricing model, an increase in the risk-free rate (rfr) will cause?

Biology
1 answer:
marishachu [46]1 year ago
4 0

In the black-scholes option pricing model, an increase in the risk-free rate (rfr) will cause an increase in call value and a decrease in put value.

The Black-Scholes Pricing Model for Options is a method for calculating the theoretical value of a call or put option based on six factors: volatility, option type, price of the underlying stock, time value, strike price, and current risk-free rate.

Given that call options have a positive Rho, they typically increase in price significantly as interest rates rise. Due to its negative Rho, put options tend to lose some of their value as interest rates rise, all other things being equal.

Therefore, In the black-scholes option pricing model, an increase in the risk-free rate (rfr) will cause an increase in call value and a decrease in put value.

Learn more about put value here:

brainly.com/question/15722953

#SPJ4

You might be interested in
A relationship in which one organism is helped and another organism is neither helped nor hurt is called
algol13

Answer:

Commensalism

Explanation:

Commensalism is when one organism is helped while the other is neutral (neither hurt nor helped).  Example: clownfish and anemone.

7 0
2 years ago
Los autosomas son aquellos cromosomas que se caracterizan por
bearhunter [10]

Answer:

Los autosomas o cromosomas autosómicos han sido ordenados de acuerdo a la morfología que poseen. ... Cada par de cromosomas son homólogos, es decir, contienen genes idénticos, con la misma ubicación a lo largo de cada cromosoma (locus). Ambos codifican para las mismas características genéticas.

Un autosoma es cualquier de los cromosomas, excepto los cromosomas sexuales. Los humanos tienen 22 pares de autosomas y un par de cromosomas sexuales (el par número 23, formado en las mujeres por dos cromosomas X y, en los hombres, un cromosoma X y un cromosoma Y).

3 0
3 years ago
__is a place where the crust of the lithosphere has fractured.
Leokris [45]
The answer is a fault.  A fault is a place where the crust of the lithosphere has fractured.
6 0
2 years ago
Please help will give brainliest and 20 points :)
anygoal [31]

Answer:

7. A and D are the most similar meaning they have similar DNA.

8. B and E will have the mutated gene that causes baldness.

Explanation:

6 0
1 year ago
PLEASE HELP
statuscvo [17]

Answer:

that's more of a personal question but if u was answering that...

Explanation:

1. save the environment, because we live in the environment and without it none of us would be alive and the environment is something that affect us all

3 0
3 years ago
Other questions:
  • Compare and contrast the elevated temperature of someone who is exercising vigorously and someone who has an infection.
    8·1 answer
  • What are the tree types of symbiotic relationship
    9·2 answers
  • What are the characteristics is associated with innate immunity?
    13·1 answer
  • The functional role of a species within an ecosystem
    14·1 answer
  • What is the article What’s the Buzz? How Bees Interrelate with Birds, Wildflowers, and Deer By John muir about
    15·1 answer
  • The three major processes in the water cycle are salinity, evaporation, and precipitation.
    7·1 answer
  • How has the cost of a 30-second Super Bowl commercial grown over time?
    10·1 answer
  • The Lac Operon is a set of genes that controls the production of lactase the enzyme that digests
    15·1 answer
  • Please help me identify what cell organelle this is and the numbers too!
    13·1 answer
  • When the ground position of a front moves so that warm air occupies territory that was previously held by cold air, what type of
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!