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Find the payoff of an interest rate call option on the annual rate with an exercise rate of 10 percent if the one-period rate at expiration is 11 percent. (No days/360 adjustment is necessary and assume a $1 notional amount.)

1. 0.12

2. zero

3. 0.01

4. 0.0090

5. none of the above

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91549078

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