If the Underlying Is Considered a Fixed-Income Instrument, Its Value

Multiple Choice

If the underlying is considered a fixed-income instrument, its value changes inversely with interest rates. Therefore, for a call option on a fixed-income instrument: ________.

A) interest rates increase => fixed-income instrument's price decreases => put option's value increases
B) interest rates increase => fixed-income instrument's price decreases => call option's value decreases
C) interest rates decrease => fixed-income instrument's price increases => put option's value decreases
D) All of these