You have purchased a zero-coupon eur bond that gives you the choice between eur 100,000 at T2
Question:
You have purchased a zero-coupon eur bond that gives you the choice between eur 100,000 at T2 = 2 or eur 90,000 at T1 = 1.
What options (put and/or call) are implicit in this bond? Show that the two equivalent views of this instrument are an application of Put Call Parity.
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You could view this as a o Twoyear eur2 100000 bond with a put on a oneyear EUR1 900...View the full answer
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Related Book For
International Finance Putting Theory Into Practice
ISBN: 978-0691136677
1st edition
Authors: Piet Sercu
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