A Call Option on Interest Rates Is Called an

question 32

Multiple Choice

A call option on interest rates is called an

• A) interest rate collar
• B) interest rate floor
• C) interest rate cap
• D) interest rate swap

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Definitions:

Mean

In statistics, it refers to the average value in a set of numbers, calculated by dividing the sum of all values by the number of values.

Scatterplot

A graphical representation displaying the relationship between two quantitative variables.

Correlated

A term indicating a statistically significant relationship between two or more variables, implying that changes in one are associated with changes in the other.

Random Samples

A sampling technique where each member of a population has an equal chance of being included, allowing for unbiased statistical analysis.