|
- UID
- 217609
- 帖子
- 193
- 主题
- 150
- 注册时间
- 2011-5-23
- 最后登录
- 2012-9-12
|
Interest rates on enbedded bonds
Hi guys,
i like to seek some confirmation if my understanding is correct.
When there is a rise in volatility,
1) it increase value of call option and decrease market value of callable bond
2) increase value of put option and decrease market value of put bond
As for the rise in interest rates, it decrease the value of putable bonds and increase the value of callable bonds.
Am i right? |
|
发表于 2011-7-13 15:59
|