menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Financial Institutions
  4. Exam
    Exam 23: 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 46

Question 46

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.

Correct Answer:

verifed

Verified

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

Related Questions

Q4: One advantage of caps, collars, and floors

Q41: A contract that results in the delivery

Q43: Allright Insurance has total assets of $140

Q48: A bank purchases a 3-year,6 percent

Q49: The outstanding number of put or call

Q50: As of 2015,commercial banks had listed for

Q70: The payoff of a credit spread call

Q104: An FI buys a collar by buying

Q111: The maximum potential loss to a buyer

Q115: The potential gain to the seller of

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