Interest rate Swaps usage -to alter portfolio Cash flows

CFA Level III Fixed Income
#1

Can somebody explain buying a put option provides protection for an investor during RISING interest rates?

Thanks

#2

if the underlying is a Bond - when rates rise - the Bond Price goes down… so in the event bond price falls - put option would not be exercised.

#3

but how does not exercising put option -provide protection.

I mean -the above line mentions that when interest rates are rising PUT option provides protection?

#4

Consider it as an insurance claim. If you need further protection, you’ll continue roll forward put option to next period until you are sure that IRs move to favorable direction.

#5

I believe in this particular instance the put option WILL be exercised.