An Interest Rate Collar Consists Of

question 30

Multiple Choice

An interest rate collar consists of:

• A) buying an interest rate cap and selling an interest rate floor.
• B) buying an interest rate floor and selling an interest rate cap.
• C) selling an interest rate floor and buying an interest rate cap.
• D) buying a call option and selling a futures contract.
• E) selling a put option and buying a futures contract.

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Definitions:

Recessive Trait

A genetic trait expressed only when two copies of the gene are present, one from each parent.

Alleles

Different versions of a gene that determine distinct traits and can be passed from parents to offspring.

Heterozygous

Refers to having two different alleles for a single trait in an organism's pair of genes.

Homozygous

A genetic condition where an individual inherits the same alleles for a particular gene from both parents.