Multiple Choice
A firm with a variable-rate loan wants to protect itself from increases in interest rates.Which of the following would interest this firm?
I.interest rate floor
II.interest rate cap
III.put option on an interest rate
IV.call option on an interest rate
A) I only
B) I and III only
C) I and IV only
D) II and III only
E) II and IV only
Correct Answer:

Verified
Correct Answer:
Verified
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