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Basic Question 11 of 12

The two adjustments applied to the Black model in order to value a swaption are for ______.

I. accrual period
II. notional amount
III. the present value of an annuity

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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

Learning Outcome Statements

describe how the Black model is used to value European options on futures;

describe how the Black model is used to value European interest rate options and European swaptions;

CFA® 2025 Level II Curriculum, Volume 5, Module 32.