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What instrument makes a convexity correction necessary for a yield curve?
a. Option-based instruments
b. FRAs
c. Futures(ANS)
d. Swaps
Can anyone explain the question? Not sure how to begin to think about the problem.
a. Option-based instruments
b. FRAs
c. Futures(ANS)
d. Swaps
Can anyone explain the question? Not sure how to begin to think about the problem.