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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