Question #24

Reading: Reading 27 Valuation and Analysis of Bonds With Embedded Options

PDF File: Reading 27 Valuation and Analysis of Bonds With Embedded Options.pdf

Page: 7

Status: Incorrect

Correct Answer: A

Your Answer: B

Part of Context Group: Q24-25 First in Group
Shared Context
- What is the value of the call option embedded in this bond? A) $6.675. B) $0.461. C) $12.924.
Question
If the bond is putable in one year at par, the value of the put is closest to:
Answer Choices:
A. $0.461
B. $0.291
C. $12.487
No explanation available for this question.
Actions
Practice Flashcards