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    Financial Institutions Management
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    Exam 24: Options, Caps, Floors, and Collars
  5. Question
    The Buyer of a Bond Call Option Stands to Make
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The Buyer of a Bond Call Option Stands to Make

Question 17

Question 17

True/False

The buyer of a bond call option stands to make a positive payoff if changes in market interest rates cause the bond price to rise above the exercise price by enough to recoup the call premium paid for the option.

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