Multiple Choice
A payer swaption is equivalent to which of the following instruments.
A) a call option on a bond
B) a long Treasury bond futures option
C) a long Eurodollar futures
D) an interest rate cap
E) a put option on a bond
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q40: A long interest rate cap is an
Q41: When valuing an interest rate call option,one
Q42: A bank buys an interest rate floor
Q43: A short FRA would be appropriate for
Q44: Suppose your firm invested in a callable
Q46: An off-market FRA is one constructed outside
Q47: In a 12 x 18 FRA,the derivative
Q48: An FRA is similar to any type
Q49: A long cap and a long floor
Q50: An interest rate collar is the purchase