Question

The Risk of prepayments of loans and bonds and or premature withdrawal of deposits is called ________

A Yield curve risk Correct Answer Incorrect Answer
B Gap risk Correct Answer Incorrect Answer
C Embedded Option Risk Correct Answer Incorrect Answer
D Price risk Correct Answer Incorrect Answer
E Reinvestment risk Correct Answer Incorrect Answer

Solution

The Risk of prepayments of loans and bonds and or premature withdrawal of deposits is called Embedded Option Risk

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