Multiple Choice
"Equilibrium" models of the term-structure
A) Are general equilibrium models of all securities in the economy.
B) Are models which match observed term structure curves perfectly.
C) Include such models as Vasicek (1977) and Cox,Ingersoll,and Ross (185) .
D) Are models which ensure that "disequilibrium" phenomena,such as negative interest rates,cannot occur.
Correct Answer:

Verified
Correct Answer:
Verified
Q3: The term "no-arbitrage" class of term-structure models
Q4: "No-arbitrage" models of the interest rate differ
Q5: A $100 face value one-year risk-free discount
Q6: In the Black-Scholes framework,return volatility is assumed
Q7: If we use the Black-Scholes model for
Q8: Which of the following is not sufficient
Q9: A $100 face value one-year risk-free discount
Q10: Which of the following statements is implied
Q12: In the Black-Scholes formula,interest rates are assumed
Q13: Suppose that the one-year and two-year zero-coupon