Purchasing a Succession of Call Options on Interest Rates Is

question 74

Multiple Choice

Purchasing a succession of call options on interest rates is called a

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

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Definitions:

Net Fixed Assets

The value of a company’s long-term, tangible assets minus any depreciation, representing the net book value of physical assets.

Inventory

The goods and materials that a business holds for the ultimate goal of resale or processing in the production process.

Profit Margin

A financial metric reflecting the percentage of revenue that remains as profit after all expenses are paid, used to assess a company's financial health and efficiency.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to gauge the relative value of a company.