A Call Option on the Level of an Interest Rate

question 149

Multiple Choice

A call option on the level of an interest rate is called an interest rate ______________.

• A) Spread.
• B) Swap.
• C) Collar.
• D) Cap.
• E) Floor.

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Definitions:

Ribosomes

Molecular machines within cells that synthesize proteins by translating the genetic information encoded in mRNA.

Nucleotides

Organic molecules that serve as the building blocks of nucleic acids like DNA and RNA, composed of a sugar, a phosphate group, and a nitrogenous base.

Nucleic Acids

Biopolymers essential to all known forms of life, which carry genetic information in cells, primarily in the form of DNA and RNA.

Genetic Information

The set of instructions found in DNA and RNA that dictates the physical and functional characteristics of an organism.