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CFA example 11 #1, page 438 book 5 Interest Rate Options
| Looking at the solution, the effective rate on the loan is 9.25%, which is greater than what it would have been (9%) if he didn’t buy the interest rate call, correct? So in this case, even though the call had a positive payoff, he would have been better of NOT hedging? Am I evaluating this correctly? |
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发表于 2013-4-2 13:02
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