Which of the Following Is True

question 14

Multiple Choice

Which of the following is true?

• A) A cap is a portfolio of put options on interest rates
• B) A cap is a put option on a coupon-bearing bond
• C) A cap is a call option on a coupon-bearing bond
• D) None of the above

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Definitions:

Total Assets

The sum of all assets owned by an entity, including both current and non-current assets, reflecting the total resources at its disposal.

Fixed Asset Turnover

A financial ratio that measures a company's efficiency in using its fixed assets to generate sales.

Net Fixed Assets

The value of a company's property, plant, and equipment minus depreciation, indicating the tangible assets used in operations.

Receivables Turnover

A ratio that measures a company's efficiency in collecting its sales on credit over a period of time.