Multiple Choice
You would like the right to purchase an interest rate cap in the future. To obtain this right, you should purchase a:
A) floor.
B) swap.
C) caption.
D) collar.
E) hat.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q49: Which one of the following methods of
Q50: A hedge between which two of the
Q51: Southern Groves raises tangerines. To hedge its
Q52: Long-run financial risk:<br>A) can frequently be hedged
Q53: By hedging short-term financial risk, a firm
Q55: For years, your family has operated a
Q56: You expect to deliver 50,000 bushels of
Q57: Futures contracts on gold are based on
Q58: The cost to purchase an option contract
Q59: The futures contract on silver is based