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