As Interest Rates Increase, the Buyer of a Bond Put

question 63

Multiple Choice

As interest rates increase, the buyer of a bond put option stands to

• A)make limited gains.
• B)incur limited losses.
• C)incur unlimited losses.
• D)lose the entire premium amount.
• E)make limited gains and lose the entire premium amount.

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Definitions:

Defence Mechanisms

Techniques used by people to handle reality and preserve their sense of self.

Hindrance Stressors

Work-related stressors that are perceived as obstacles to personal growth or achievement, such as role conflict or unnecessary restrictions.

Challenge Stressors

Aspects of work that, while potentially stressful, are seen as positive and motivating, providing opportunities for learning, growth, and achievement.

Job Performance

The effectiveness with which an individual executes the tasks and responsibilities related to their job role.