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Basic Question 6 of 15

All else being equal, the value of a put option is the highest if the yield curve is:

A. upward sloping.
B. flat.
C. downward sloping.

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I used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

explain how interest rate volatility affects the value of a callable or putable bond;

explain how changes in the level and shape of the yield curve affect the value of a callable or putable bond;

calculate the value of a callable or putable bond from an interest rate tree;

CFA® 2025 Level II Curriculum, Volume 4, Module 28.