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.

---

Definitions:

Syndicated Data Services

Companies that collect and sell data, often gathered from multiple sources, to clients for market research and analysis.

Quality-oriented Process

An approach focusing on maintaining high standards in production or service delivery to satisfy customer needs.

Perishable Services

Services that cannot be stored for future use and must be consumed at the time of production, like live entertainment or airline flights.

Empowerment

The process of increasing the degree of autonomy and self-determination in people or communities to enable them to represent their interests in a responsible and self-determined way.