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.
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Explanation:
Transposable elements are considered to be responsible for vast range of genome diversity and gene silencing.
Explanation:
Transposable elements are short sequences of DNA that have the ability to move from one location to another in the genome. During this process they copy themselves.
The entire process carried out by transposable elements to copy themselves and move from one location to another is called transposition.
Transposition may result in mutation and is potentially a major source of genome diversity and change. If a transposon inserts itself into the coding region of a gene,it interrupts the coding sequence and inactivates the gene expression.
In addition to this, a transposable element may contain transcription or translation termination signal that will block the gene expression downstream of insertion site.
