Which of the Following Statements Is INCORRECT

question 20

Multiple Choice

Which of the following statements is INCORRECT?

• A) Vasicek built one of the first generalized interest rate option pricing models.
• B) Spot rate models for valuing interest rate options required the estimation of risk-premium.
• C) Spot rate models for valuing interest rate options could not easily match the initial yield curve.
• D) The Heath-Jarrow-Morton model is a continuous-time and multifactor model.
• E) Black's model,a subcase of the Heath-Jarrow-Morton model,is widely used by traders.

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Definitions:

Token Economy

A behavior modification system that utilizes tokens as reinforcing stimuli which can be exchanged for desired rewards.

Systematic Desensitization

Systematic Desensitization is a behavior therapy technique used to reduce phobic disorders by gradually exposing the person to the anxiety-producing stimulus in a controlled manner.

Client-centered Therapy

A psychotherapeutic approach developed by Carl Rogers, emphasizing unconditional positive regard, empathy, and genuineness in the therapeutic relationship to facilitate client growth.

Aversive Conditioning

A form of behavioral training in which noxious stimuli are associated with undesirable behaviors to reduce their occurrence.