The payoffs on bond call options move symmetrically with changes in interest rates.

Name: The payoffs on bond call options move symmetrically with changes in interest rates.
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Question

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Bond call options increase in value when interest rates decrease, as the underlying bond's price increases. Conversely, they decrease in value when interest rates increase, leading to an asymmetric relationship with interest rates.

The Payoffs on Bond Call Options Move Symmetrically with Changes