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Which of the Following Statements Is INCORRECT

Question 20

Multiple Choice

Which of the following statements is INCORRECT?


A) Vasicek built one of the first generalized interest rate option pricing models.
B) Spot rate models for valuing interest rate options required the estimation of risk-premium.
C) Spot rate models for valuing interest rate options could not easily match the initial yield curve.
D) The Heath-Jarrow-Morton model is a continuous-time and multifactor model.
E) Black's model,a subcase of the Heath-Jarrow-Morton model,is widely used by traders.

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