Question

Which of the following Government securities are rooted with derivatives, such as call options and put options?

a.

Securities with embedded derivatives

b.

Zero coupon bonds

c.

Securities with variable coupon rates

d.

Securities with fixed coupon rates

Posted under IC 89 Management Accounting

Answer: (a).Securities with embedded derivatives Explanation:These government securities have embedded derivatives, such as call options or put options. Embedded derivatives are components within a financial instrument that have characteristics of standalone derivatives.

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Q. Which of the following Government securities are rooted with derivatives, such as call options and put options?
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