CFA Practice Question

There are 252 practice questions for this study session.

CFA Practice Question

All else being equal, the value of a put option is the highest if the yield curve is:

A. upward sloping.
B. flat.
C. downward sloping.
Correct Answer: A

The value of a put option decreases as the yield curve flattens. This is because the number of opportunities for the investor to put the bond declines.

User Contributed Comments 0

You need to log in first to add your comment.