Distinguish between the following: 'Call premium' and 'put premium'.

Call premium Put premium Exchange Rate As exchange rate increases call premium also increases As exchange rate increases put premium decreases. Strike Price As strike rate increases call premium decreases As strike rate increases put premium also increases Risk free interest rate As the interest rate in the economy increases, value of call option increases As the interest rate in the economy increases, value of Put option decreases Volatility As volatility increases, there is high degree of uncertainty about the rate of the currency and hence on the option. The owner of the call benefits from the rate increase. Due to increase in volatility the owner of put option benefits from the rate decreases.