Interest rate Swaps usage -to alter portfolio Cash flows

Can somebody explain buying a put option provides protection for an investor during RISING interest rates?


if the underlying is a Bond - when rates rise - the Bond Price goes down… so in the event bond price falls - put option would not be exercised.

but how does not exercising put option -provide protection.

I mean -the above line mentions that when interest rates are rising PUT option provides protection?

Consider it as an insurance claim. If you need further protection, you’ll continue roll forward put option to next period until you are sure that IRs move to favorable direction.

I believe in this particular instance the put option WILL be exercised.