- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 27. The Arbitrage-Free Valuation Framework
- Subject 1. Arbitrage-Free Valuation for an Option-Free Bond
CFA Practice Question
The process of reconstitution continues until:
B. the price of the Treasury security does not vary materially from the arbitrage-free value.
C. the Treasury puts a stop to the process.
A. all Treasury security dealers earn an arbitrage profit.
B. the price of the Treasury security does not vary materially from the arbitrage-free value.
C. the Treasury puts a stop to the process.
Correct Answer: B
User Contributed Comments 0
You need to log in first to add your comment.