Question: PLEASE EXPLAIN ALL STEPS AND INFORMATION ON HOW TO ANSWER THIS AND WHY THE ANSWER IS CORRECT, NOT JUST ANSWER THE QUESTION. THANK YOU SO

PLEASE EXPLAIN ALL STEPS AND INFORMATION ON HOW TO ANSWER THIS AND WHY THE ANSWER IS CORRECT, NOT JUST ANSWER THE QUESTION. THANK YOU SO MUCH.

For European currency options written on euro with a strike price in dollars, what of the effect of an increase r (interest rate in Euro)?

A.Decrease the value of calls and puts ceteris paribus

B.Increase the value of calls and puts ceteris paribus

C.Decrease the value of calls, increase the value of puts ceteris paribus

D.Increase the value of calls, decrease the value of puts ceteris paribus

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