Vol 4, Reading 25, Pg 155, EOC 27

The solution to EOC #27 states that option A is correct.

Given that the portfolio contains non-callable bonds why is contingent claim risk a factor?

Wouldn’t choice C be the correct answer?


there a lot of threat about this question here. please search

got it, thanks!

realize that the question is a play on words. It is just asking “what should he be worried about” in “general”?