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Interest Rate Collar
A derivative strategy that combines an interest rate cap and floor to limit exposure to interest rate fluctuations.
Lower Bound
A minimum value or limit that a variable, such as a stock price or interest rate, can assume.
Upper Bound
The maximum limit or highest achievable level of a particular measurement.
Call Option
A contractual arrangement providing the holder with the privilege, yet not the compulsion, to acquire an asset such as a stock, bond, or commodity, at a predetermined price during a defined period.
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