nerdexam
SOFE

AFE · Question #54

Quantifies the sensitivity of the option price to changes in interest rates is known as:

The correct answer is C. effective duration measure. See the full explanation below for the reasoning.

Question

Quantifies the sensitivity of the option price to changes in interest rates is known as:

Options

  • Acomplexity measure
  • Bquantifiable measure
  • Ceffective duration measure
  • Dchange measure

How the community answered

(48 responses)
  • A
    15% (7)
  • B
    4% (2)
  • C
    73% (35)
  • D
    8% (4)

Community Discussion

No community discussion yet for this question.

Full AFE Practice