Mortgage backed security, In a mortgage backed security

Mortgage backed security

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Reference no: EM132038602

True or False

1) In a mortgage backed security (MBS), the AA tranche receives payments before the AAA tranche.

2) CDS Credit Default Swaps are activated after a credit event for the reference entity.

3) You would use a long straddle option strategy if you expected the underlying security to either increase or decrease in value more than a small amount from its existing price.

4) I will love the Geometric Brownian Motion equation above all other equations, forever.

Reference no: EM132038602

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