CFA Practice Question

CFA Practice Question

Which of the following is incorrect?
A. Other things kept constant, an increase in the riskless interest rates will increase call option prices.
B. A Synthetic Call can be formed by creating a portfolio with 1 Stock, 1 Put, and short Bonds with maturity value (on settlement date) equal to strike price.
C. Other things kept constant, an increase in the riskless interest rates will increase put option prices.
Explanation: Other things kept constant, an increase in the riskless interest rates will decrease put option prices.

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