单选题

Which of the following statements regarding the option adjusted spread (OAS) is least accurate? The option adjusted spread（）。

A、 is used to adjust for the cost of the embedded option.
B、 is the spread that accounts for non-option characteristics like credit risk, liquidity risk, and interest rate risk.
C、 for a putable bond is the Z-spread minus the cost of the option.

【正确答案】 C

【答案解析】

Since the buyer of a putable bond must pay extra for the put option, the OAS spread for a putable bond is the Z-spread plus the put option cost in percent.