What is meant by the option-adjusted spread?
What will be an ideal response?
The option-adjusted spread (OAS) measures the yield spread (in basis points) that can be used to convert dollar differences between value and price. Thus, basically, the OAS is used to reconcile value with market price. The reason that the resulting spread is referred to as
option-adjustedis because the cash flows of the security whose value we seek are adjusted to reflect the embedded option.
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Which of the following events tactics is recommended to a firm whose marketing objective is to
build brand awareness? A) organizing hospitality tents at events B) throwing launch parties C) giving away samples at an event D) increasing merchandising and promotion efforts