Interest rates are a factor in option pricing because of the effect of the options market on RBA monetary policy considerations.

Name: Interest rates are a factor in option pricing because of the effect of the options market on RBA monetary policy considerations.
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Quizplus · Accepted Answer

Interest rates are a factor in option pricing due to their impact on the cost of carrying the underlying asset and the discounting of future cash flows, not because of their effect on monetary policy considerations.

Interest Rates Are a Factor in Option Pricing Because of the Effect