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QUESTION 10 Which of the following holds true for the writer of a bond call option if interest rates decrease? Makes profits limited to call
QUESTION 10
Which of the following holds true for the writer of a bond call option if interest rates decrease?
Makes profits limited to call premium | ||
Makes losses limited to call premium | ||
Potential to make large losses | ||
Potential to make unlimited profits | ||
Answers B and D only |
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