Multiple Choice
If a risk manager wants to put on an upper limit on an interest rate payable on a future borrowing by buying an option and at the same time he wants an option that puts a minimum limit on how low interest rate payable may fall,this combination is called:
A) a cap.
B) a floor.
C) a collar.
D) a wrap.
Correct Answer:
Verified
Correct Answer:
Verified
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