The Value of an Interest Rate Call Option Increases When

question 103

True/False

The value of an interest rate call option increases when interest rates fall.

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Definitions:

Strict Liability

A legal principle where a party is held responsible for damages or loss regardless of fault or intent, typically applied in cases involving inherently hazardous activities.

Foreseen Danger

A risk or hazard that was known or could have been anticipated prior to an event.

Poisonous Snake

A snake species that has venom which is harmful or fatal to humans and other animals upon biting.

Confinement

The state of being restricted or limited within certain boundaries.