A bank can establish a floor on interest rate costs by:
A) buying a call option on Eurodollar futures.
B) selling Eurodollar futures contracts.
C) selling a call option on Eurodollar futures.
D) a. and b.
E) b. and c.

Question

A bank can establish a floor on interest rate costs by:
A) buying a call option on Eurodollar futures. 
B) selling Eurodollar futures contracts.
C) selling a call option on Eurodollar futures.
D) a. and b.
E) b. and c.

Quizplus · Accepted Answer

The Answer of A bank can establish a floor on interest rate costs by:
A) buying a call option on Eurodollar futures. 
B) selling Eurodollar futures contracts.
C) selling a call option on Eurodollar futures.
D) a. and b.
E) b. and c.

A Bank Can Establish a Floor on Interest Rate Costs