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Commerce · Q619

Financial Management

Graduate and Post Graduate · Commerce · question 619

Q619

Yield on Treasury bill with a maturity is classified as a risk free rate but must be equal to an

A.
option closing price
B.
option beginning price
C.
option expiration
Answer
D.
option model

Answer: Option C

Solution

Answer: Option C
Solution:
Yield on Treasury bill with a maturity is classified as a risk free rate but must be equal to an option expiration. An expiration date in derivatives is the last day that a derivative, such as options or futures, is valid.