An interest rate collar is
A) when one simultaneously buys an interest rate cap and sells an interest rate floor.
B) when one simultaneously buys an interest rate floor and sells an interest rate cap.
C) the difference between the actual interest rate and the strike rate.
D) Both A and B are correct.
Correct Answer:
Verified
Q25: Banks pursued securitizations
A) as a means for
Q26: Which of the following is false regarding
Q27: An agreement whereby the seller for a
Q28: An agreement whereby the seller for a
Q29: The main benefit of currency swap agreements
Q31: Banks pursue securitizations
A) as a means for
Q32: Which of the following is true regarding
Q33: An agreement whereby the buyer for a
Q34: An agreement to simultaneously buy and interest
Q35: Which of the following is false?
A) A
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