Premature payment of a term loan will result in interest rate risk of type:

Question

(i) Basis risk

(ii) Yield curve risk

(iii) Embedded option risk

(iv) Mismatch risk

Vinod Jetley · Answer

(iii) Embedded option risk

Wolf Klaas Kinsbergen · Answer

for a loan it is expected so it must be and embedded option risk (iii)

Divyesh Patel · Answer

<p>Option3</p>

waeil osman EL sharif · Answer

Mary Mandy · Answer

C. Embedded option risk and this creates problems for those wishing to invest in securities.

Emad Mohammed said abdalla · Answer

To the best of my knowledge (iii) Embedded option risk

Ssap Allen · Answer

Answer of this basis risk

Alex Al Yazouri · Answer

(iii) >>>>>>>>>Embedded option risk

Abdou warshan · Answer

..................... (iii) Embedded option risk

khaled elkholy · Answer

embedded risk id right answer,,,,,,,,,,,,,,,,,,,,,,,,,,

Deleted user · Answer

Experts answers

(iii) Embedded option risk