The Value of an Interest Rate Call Option

question 8

Multiple Choice

The value of an interest rate call option

• A) is based on the market price of U.S. Treasury securities.
• B) increases when the yield on the underlying Treasury security rises.
• C) decreases when the price of U.S. Treasuries decreases.
• D) varies directly with the price of the underlying corporate bond.

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A cognitive trait characterized by a reluctance or refusal to consider alternative perspectives, ideas, or evidence.

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Analysis or narratives aimed at judging the value or significance of subject matter based on criteria.