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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 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

Barnes

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.