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Basic Question 4 of 14
If a call option is in the money, the one-sided up duration (if interest rate rises) is MOST LIKELY ______ the one-sided down duration.
B. lower than
C. equal to
A. higher than
B. lower than
C. equal to
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
calculate and interpret effective duration of a callable or putable bond;
compare effective durations of callable, putable, and straight bonds;
describe the use of one-sided durations and key rate durations to evaluate the interest rate sensitivity of bonds with embedded options;
CFA® 2025 Level II Curriculum, Volume 4, Module 28.