Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
Basic Question 6 of 12
The Black model uses the ______ as the underlying rate to value an interest rate option.
B. spot LIBOR
C. forward rate
A. FRA rate
B. spot LIBOR
C. forward rate
User Contributed Comments 0
You need to log in first to add your comment.
Your review questions and global ranking system were so helpful.
Lina
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.