Option value and interest rate

CFA Level II Derivatives
#1

I have a question about option value and interest rate.

  • Rho is positively related to Call option but negatively related to Put option. (as we can see from graph between rho and call/put)
  • From bond with embedded option, they said as Call option value is inversely related to the level of interest rate. While put value directly with the level of interest rate.

I see conflict between two chapter. Anybody please kindly help to clarify. thank you

#2

The former refers to options on things like stocks and commodities, whose prices usually aren’t primarily influenced to interest rates.

The latter refers to options embedded in bonds, whose prices are primarily influenced to interest rates.