Financial Analytics
A Practitioner's Resourcekit
Author: Thiru Praturi
Option-Greek Sensitivities
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9/16/2025 9:24


Which of the following statements is true?

a : Liquidity hypothesis indicates that, all other things being equal, longer maturities will have lower yields.
b : Expectation hypothesis states that the long-term rate tends to be equal with the anticipated short-term rate
c : Believers of Segmentation hypothesis assert that borrowers and lenders are constrained in their borrow/lend activity, at a particular segment of the yield curve
d : Expectations hypothesis indicates a flat yield curve if anticipated future short term rates exceed current short term rates

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