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    Business
  3. Study Set
    Financial Institutions Management
  4. Exam
    Exam 24: Options, Caps, Floors, and Collars
  5. Question
    Using the Proceeds from the Simultaneous Sale of a Floor
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Using the Proceeds from the Simultaneous Sale of a Floor

Question 2

Question 2

Multiple Choice

Using the proceeds from the simultaneous sale of a floor to finance the purchase of a cap is to open a position called a


A) open interest.
B) pull-to-par.
C) cap.
D) floor.
E) collar.

Correct Answer:

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