Writing a call option on a bond pays off if interest rates rise.

Name: Writing a call option on a bond pays off if interest rates rise.
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Writing a call option on a bond gives the holder the right to purchase the bond at a predetermined price if interest rates rise, which would result in the writer making a profit. Therefore, if interest rates do in fact rise, the call option would be exercised and the writer would receive the agreed upon price, resulting in a payoff.

Writing a Call Option on a Bond Pays Off If