Final answer:
The value of a call option typically decreases with lowering implied volatility but increases with a rise in the risk-free rate. Meanwhile, in the financial market, interest rates typically decline when there is a rise in the money supply.
Step-by-step explanation:
The value of a call option typically decreases when the implied volatility decreases. When there is lower volatility, the probability that the option will end up in-the-money (that is, with a stock price above the strike price for calls) is reduced, thus the option becomes less valuable. On the other hand, when the risk-free rate increases, the value of a call option usually increases as well because the present value of the exercise price is discounted at a higher rate, making it cheaper in present value terms and increasing the value of the option.
In the context of financial market changes, a rise in the supply of money, ceteris paribus (all other things being equal), would lead to a decline in interest rates. When there's more supply of a financial commodity like money available for borrowing, the price of borrowing that money (which is the interest rate) tends to go down.