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What does an inverted yield curve imply the most? ( i . e . 1 0 y - 3 m spread is negative ) A
What does an inverted yield curve imply the most? ie spread is negative
A Longterm investors are buying longterm treasuries, expecting slower economic growth
B Longterm investors accept lower bond prices, and economy is likely to face stagnant growth or recession
C Longterm investors try to seek for shortterm liquidity premium and sell longterm treasuries
D Shortterm inflation expectation has waned
You want to construct the following payoff using options. Which combination of options yield the following? Ignore premium. All calls have the same expiration date.
A long put at long call at
B long call at short call at long call at
C long call at short call at long call at
D short call at long call at short call at
You invest in the stock of Valleyview Corporation and purchase a put option on Valleyview Corporation. This strategy is called a
A long straddle
B naked put
C protective puts
D short stroll
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