Course: Securities & Investments
1. When a bond is called, you're paid the present value of all bond payments that won't be paid because of the call only if what provision is present?
A. Most favored nation
B. Conversion
C. Call
D. Make-whole
2. How do call and put prices react to changes in sigma?
A. Puts move more dramatically than calls
B. Neither puts nor calls react to changes in sigma
C. Fairly similarly
D. Calls more more dramatically than puts