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    Exam 9: No-Arbitrage Restrictions
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    All Else the Same,when the Interest Rate Rises,the Lower Bound
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All Else the Same,when the Interest Rate Rises,the Lower Bound

Question 9

Question 9

Multiple Choice

All else the same,when the interest rate rises,the lower bound on a call option


A) Falls or stays the same.
B) Stays the same.
C) Increases or stays the same.
D) May become negative.

Correct Answer:

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