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Bond Option |
Also found in: Wikipedia | 0.02 sec. |
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Bond Option An option to buy or sell (depending on whether it is a call or a put) a bond at a certain price on or before the expiry date. One buys a call bond option if one believes that interest rates will fall, causing an increase in bond prices. Likewise, one buys a put bond option if one believes that the opposite will be the case. See also: Stock option. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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