Multiple Choice
Leando Enterprises has a variable rate loan and wants to lock in the rate so that the firm is in essence paying no more than 8.5% nor less than 7.5%. To do this, the firm needs to ____ a call and ____ a put option on interest rates.
A) buy; buy
B) buy; sell
C) buy; ignore
D) sell; buy
E) sell; ignore
Correct Answer:
Verified
Correct Answer:
Verified
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