A Contract Whose Payoff Increases as a Yield Spread Increases

question 59

Multiple Choice

A contract whose payoff increases as a yield spread increases above some stated exercise spread is a

• A)put option.
• B)call option.
• C)digital default option.
• D)futures option.
• E)credit spread call option.

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Definitions:

Organized Crime

Structured groups engaged in illegal activities, including but not limited to trafficking, fraud, and extortion.

Lack of Laws

A situation where there are insufficient legal regulations or protections in a specific area or context.

Cyberdeviance

Maladaptive or harmful behaviors that are conducted through digital platforms or technologies.

Computer Network

A collection of interconnected computers and devices that share resources, data, and applications among users.