Question: Which statement is not correct? Flat yield curve is not consistent with Liquidity Preference Theory. You won't lose money by trading options becuase they give
Which statement is not correct?
| Flat yield curve is not consistent with Liquidity Preference Theory. | ||
| You won't lose money by trading options becuase they give you a "right" not an "obligation" to exercise the option. | ||
| Duration measures how much interest rate risk a bond is exposed to. | ||
| Companies may not be able to fairly quickly lower their capitalization rate (required rate of return) to increase their stock price. |
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