I'm confused. I've read conflicting effects of interest rates on option prices. Some say as interest rates rise: -Puts decrease in value while calls increase in value. Others say as interest rates rise: -Both puts and calls decrease in value. What's the right answer? NVM: I think I know the answer. -The first statement takes into account the effect of interest rates on the underlying. -The second statement assumes that options exist in a vacuum. Thus, I would say the first statement is most accurate.