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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Natural selection leads to evolution due to the way reproduction works. In the example of European moths during the industrial revolution, we can see this clearly. When the industrial revolution was going, there was more pollution, hence darkening the skies and leaving ash. Moths, which before were white with occasional black spots dominated the area until pollution effected their environment. Whiter moths were eaten by bird who could easily see them against the black trees and skies. These moths could no longer reproduce, they were dead. Moths with more black could survive longer to reproduce because they were harder to see. As time went along, the moths turned mostly black, showing an example of evolution.
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