Multiple Choice
The position of a bondholder that is long a callable bond is equal to being
A) Long a noncallable bond + long a call option on the bond.
B) Long a noncallable bond + short a call option on the bond.
C) Short a noncallable bond + long a call option on the bond.
D) Short a noncallable bond + short a call option on the bond.
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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