contestada

Consider the case of an investor, Nazim: Nazim wants to include putable bonds in his investment portfolio. Nazim is likely to put the bonds when: He expects to use the cash when the bond matures. He is in need of cash.

Respuesta :

Nazim is likely to put the bonds when he is in need of cash.

What is a putable bond?

A putable bond is a debt instrument that gives the holder the right but not the obligation to sell a bond at a predetermined price when the price of the bond is below a certain price.

For example, if the current price of a bond is 100 and the bondholder buys a put option with a strike price of 90. If price of the bond falls to 90, he sells the bond.

To learn more about puts, please check: https://brainly.com/question/4490636

Otras preguntas