
Financial Risk Manager Part 2
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In a scenario where a validated pricing model is producing negative short-term interest rates, which could lead to inaccurate valuation of a 5-year call option on a 5-year Treasury note, particularly in a period of high interest rate volatility, what would be the most suitable action for a financial analyst to take in order to address this issue effectively?
In a scenario where a validated pricing model is producing negative short-term interest rates, which could lead to inaccurate valuation of a 5-year call option on a 5-year Treasury note, particularly in a period of high interest rate volatility, what would be the most suitable action for a financial analyst to take in order to address this issue effectively?
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