Buying a Floor Means Buying a Put Option on Interest

question 83

True/False

Buying a floor means buying a put option on interest rates.

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Definitions:

Confidence Limits

Confidence limits define the range within which a population parameter is estimated to lie with a certain level of confidence.

Standard Error

A measure of the dispersion or spread of sample means around the population mean.

Confidence Interval

A range of values, derived from a data set, that is likely to contain the value of an unknown population parameter.

Confidence Interval

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter.