Which of the Following Bond Option Positions Increase in Value

question 22

Multiple Choice

Which of the following bond option positions increase in value when interest rates increase?

• A)Long call; written put
• B)Long put; written call
• C)Long put; long call
• D)Written put; written call
• E)None of the options are correct.

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Definitions:

Lynched

An act of aggression where a group, acting without official legal sanction, executes an individual, frequently through lynching, based on accusations of wrongdoing, regardless of whether they have been formally tried.

Accused

An individual who has been charged with a crime or is alleged to have committed a wrongdoing.

Lynch Law

The practice of punishment, often by hanging, carried out by mob action without legal authority, frequently used to control or terrorize African Americans.

Deep South

A term referring to the southernmost region of the United States characterized by its historical dependence on agriculture, particularly cotton, and a history of racial segregation and significant African American population.