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What is the relationship between put option price and risk free rate? And between call options price and risk free rate? Explain the logic? No calculation.

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closed as unclear what you're asking by Bob Jansen Oct 12 '15 at 18:52

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    $\begingroup$ Cross-posted to economics, please note cross-posting is not allowed. $\endgroup$ – Bob Jansen Oct 12 '15 at 18:55
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    $\begingroup$ As a general rule, in a high interest rate environment it is advantageous to postpone payments and disadvantageous to postpone receipts. Therefore a call option (option to buy and pay later) increases in value when interest rates rise, while a put option (option to sell and receive payment later) decreases in value as interest rates rise. $\endgroup$ – noob2 Oct 12 '15 at 19:23
  • $\begingroup$ As you can see here en.wikipedia.org/wiki/… the RHO of a European call is positive, while the RHO of a European put is negative. $\endgroup$ – Alex C Oct 13 '15 at 2:28