Multiple Choice
A put option on the level of an interest rate is called an interest rate ____________.
A) spread
B) swap
C) collar
D) cap
E) floor
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q9: What is cross-hedging?<br> Why do you suppose
Q41: Suppose a farmer has 100,000 bushels of
Q42: Long-term financial risk arising from permanent changes
Q44: Hedging is designed primarily to reduce a
Q45: The risk of default is larger with
Q47: S&P 500 INDEX (CME); $500 times index
Q48: The buyer of a forward contract:<br>A) Is
Q49: Company A can borrow at either an
Q50: You think that market interest rates are
Q51: A derivative security can best be defined