The Payoff of a Long Interest Rate Floor Is Equivalent

question 30

True/False

The payoff of a long interest rate floor is equivalent to the payoff of a short receiver swaption.

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Definitions:

Chemical Communication Systems

The transfer of information among organisms through the release and reception of chemical signals.

Blood

A vital fluid in humans and animals that delivers necessary substances such as nutrients and oxygen to cells and transports metabolic waste products away.

Black Bile

One of the four humors in ancient and medieval medicine, believed to be associated with melancholy when present in excess.

Endocrine System

A network of glands and organs that produce, store, and secrete hormones into the bloodstream to regulate the body's metabolism, growth, and development.