A ____ Contract Can Be Viewed as a Prepackaged Series

question 80

Multiple Choice

A ____ contract can be viewed as a prepackaged series of forward rate agreements to buy or sell LIBOR at the same fixed rate.

• A) swap
• B) cap
• C) floor
• D) collar
• E) ceiling

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Definitions:

Authorized Mode

Pertains to a legally or officially approved method or procedure.

Effective

Something that produces a desired result or achieves the intended outcome.

Click-on Agreement

A legal agreement that a user accepts by clicking on a button or link, commonly used in software licenses and online services.

Subscription

An arrangement to receive goods or services, typically on a regular basis, in exchange for payment.