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    Financial Institutions Management Study Set 2
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    Exam 11: Credit Risk II: Loan Portfolio and Concentration Risk
  5. Question
    A Digital Default Option Is a Call Option Whose Payoff
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A Digital Default Option Is a Call Option Whose Payoff

Question 50

Question 50

True/False

A digital default option is a call option whose payoff increases as a yield spread increases above a stated exercise spread.

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