menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Financial Institutions Management
  4. Exam
    Exam 24: Options, Caps, Floors, and Collars
  5. Question
    The Tendency of the Variance of a Bond's Price to Decrease
Solved

The Tendency of the Variance of a Bond's Price to Decrease

Question 86

Question 86

Multiple Choice

The tendency of the variance of a bond's price to decrease as maturity approaches is called


A) open interest.
B) pull-to-par.
C) digital default option.
D) futures option.
E) credit spread call option.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q81: An FI manager purchases a zero-coupon bond

Q82: The payoff values on bond options are

Q83: Buying a floor means buying a put

Q84: A bank purchases a 3-year, 6

Q85: An FI manager purchases a zero-coupon bond

Q87: An FI manager purchases a zero-coupon bond

Q88: Assume a binomial pricing model where there

Q89: There are regulatory reasons why FIs buy

Q90: Unlike futures contracts, options are traded electronically

Q91: Allright Insurance has total assets of $140

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines