Look once more at the Apple call option that we valued in the Finance in Action box

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Look once more at the Apple call option that we valued in the Finance in Action box in Section 25.2. Suppose (Just suppose) that the interest rate on bank loans is 20%. Recalculate the value of the Apple call option. What does this tell you about the relationship between interest rates and the value of a call?
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Fundamentals of Corporate Finance

ISBN: 978-1259024962

6th Canadian edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim

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