Multiple Choice
An interest rate _____ is a call option on interest rates, a _____ is a put option on interest rates and a combination of the two is called a _____.
A) cap; floor; collar
B) ceiling; cap; collar
C) floor; cap; caption
D) caption; floor; cap
E) cap; floor; caption
Correct Answer:
Verified
Correct Answer:
Verified
Q9: The difference between a futures contract and
Q10: Leando Enterprises has a variable rate loan
Q11: If a firm creates an interest rate
Q12: You own three September futures contracts on
Q13: Smith Brothers has a floating-rate loan based
Q15: Which of the following is the best
Q16: A speculator, not a hedger, would purchase
Q17: You are considering two option contracts with
Q18: Mitch sold 10 futures contracts on copper
Q19: Provide a suitable definition of call option.