exercise: convexity correction for Futures

Discussion in 'P1.T3. Financial Markets & Products (30%)' started by fullofquestions, Sep 28, 2009.

  1. fullofquestions

    fullofquestions New Member

    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.

Share This Page

loading...