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Risk Free Rate




The interest chargeable on Treasury Bills (T-Bills) is generally known as the Risk Free Rate, and it is this rate that is used as a component part of the theoretical options valuation model.

Related Terms:

Treasury Bill
The Treasury bill, or T-bill, is a zero coupon bond issued for terms of one month ...

CBOE
CBOE interest-rate products are based on the underlying assets of U.S. Treasury bills, 5-year U.S. Treasury ...

TIPS
Treasury inflation-protected securities (TIPS) are inflation-indexed bonds issued by the U.S. Treasury. The rate of return ...





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