Which of the Following Best Describes an Interest Rate Cap

question 52

Multiple Choice

Which of the following best describes an interest rate cap?

• A)a cash-and-carry hedge
• B)a series of forward contracts
• C)a series of interest rate calls
• D)a call option spread
• E)none of the above

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Definitions:

Social Integration

The process during which newcomers or minorities are incorporated into the social structure of the host society.

Trade School

An educational institution that teaches job-specific skills for specific careers or trades, rather than academic subjects.

High School Diplomas

Certification awarded by educational institutions to signify that a student has completed the required coursework and standards for secondary education.

Social Origin

The background or social class from which an individual comes, including factors like family wealth, education, and professional status, which can influence opportunities and life trajectory.