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- UID
- 223439
- 帖子
- 318
- 主题
- 7
- 注册时间
- 2011-7-11
- 最后登录
- 2014-8-7
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bought callable bond is equal to bought straight bond and sold call option (sold right to buy the straight bond).
the value of the straight bond goes down when rates go up. therefore the value of the call bond option decreases.
or
the probability that the issuer exercises the option (calls the bond) goes down when rates go up. when probability of exercise goes down the value of option goes down
ok? |
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发表于 2011-7-11 19:32
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