Buying a Cap Option Agreement

question 97

Multiple Choice

Buying a cap option agreement

• A)means buying a (or several) call option on interest rates.
• B)means buying insurance against excessive decreases in interest rates.
• C)allows more than one exercise date.
• D)All of these are correct.
• E)means buying a (or several) call option on interest rates, and allows more than one exercise date.

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