单选题 All of the following statements regarding interest-rate options are true EXCEPT: A. they are based on a fixed income security and can hedge interest rate risk. B. they are based on a specific interest rate rather than a bond. C. call option values move in the same direction as interest rates.

【正确答案】 A

【答案解析】Treasury bond or bill options are options on fixed income securities. Interest rate options are based on a specific reference rate and interest rate calls have positive payoffs when the reference rate is above the rate specified in the contract.