Solved

A Firm with a Variable-Rate Loan Wants to Protect Itself

Question 58

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions