Which of the Following Is Assumed to Be Lognormal When

question 7

Multiple Choice

Which of the following is assumed to be lognormal when a swap option is valued?

• A) A future bond price
• B) A future swap rate
• C) A future short-term rate
• D) A future bond yield

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Definitions:

Holographic

Pertaining to holograms, typically used to describe a three-dimensional image formed by the interference of light beams from a laser or other coherent light source.

Abatement

A reduction, decrease, or removal of something, especially of a nuisance or environmental hazard.

Estate

All of the property, assets, and debts that a person leaves behind at death.

Estate

All the money, property, and assets owned by an individual at the time of their death.