A Bond Investor Is More Likely to Exercise a Put

question 15

Multiple Choice

A bond investor is more likely to exercise a put option in a bond contract if:

• A)market interest rates increase.
• B)market interest rates decrease.
• C)the default risk of a bond decreases.
• D)good news about the bond issuer financial position has been released.

---

Definitions:

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to the growing baby while removing waste products from the baby's blood.

IUD

An intrauterine device, a small contraceptive device inserted into the uterus to prevent pregnancy.

Birth Control

Methods, devices, or medications used to prevent pregnancy, allowing individuals or couples to determine the timing and spacing of childbirth.

HAART

Highly Active Antiretroviral Therapy, a treatment regimen for HIV/AIDS that uses a combination of several antiretroviral drugs to suppress the virus and stop the progression of the disease.