A Put Option on the Level of an Interest Rate

question 217

Multiple Choice

A put 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:

Being Specific

The quality of being clear and precise in communication or description, avoiding vagueness or ambiguity.

Emailing A Vendor

The act of sending an electronic message to a supplier or service provider for business-related purposes, such as inquiries or orders.

Ship Date

The scheduled date on which a product is supposed to be dispatched or shipped to a customer.

Direct Approach

A communication style that involves stating the main point or objective at the beginning, followed by supporting details.