Why do higher interest rates lead to higher call option, Financial Management

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Why do higher interest rates lead to higher call option

Why do higher interest rates lead to higher call option prices but lower put option prices? Suppose a European put price exceeds the value predicted by put-call parity.

How could an investor profit? Demonstrate that your strategy is correct by constructing a payoff table showing the outcomes at expiration.

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Financial Management: Why do higher interest rates lead to higher call option

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