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If a Lender Uses a Collar,the Transactions Would Be

Question 28

Multiple Choice

If a lender uses a collar,the transactions would be


A) buy a floor at one exercise price,sell a floor at another exercise price
B) buy a floor,sell a cap
C) sell a floor,buy a cap
D) buy a cap at one exercise price,sell a floor at another exercise price
E) buy a cap and sell a floor at the same exercise price

Correct Answer:

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