

▲ 2 r/CFA
Refer to the images attached for context, I am a bit confused with the explanation about why value of the put option is increasing with decrease in volatility, and given that straight bond value doesn't change when yield curve is changing from flat to upward sloping the value of the puttable bond should decrease as per my understanding. I checked with gemini also it is giving decrease as well.
u/CoolTie9612 — 14 days ago