The writer of a ____ agreement makes settlement payments when LIBOR is greater than the striking rate of the agreement.
A) Swap
B) Cap
C) Floor
D) Collar
E) None of the above

Name: The writer of a ____ agreement makes settlement payments when LIBOR is greater than the striking rate of the agreement. A) Swap B) Cap C) Floor D) Collar E) None of the above
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Question

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A cap agreement involves the writer making payments when the reference rate, such as LIBOR, exceeds the strike rate.

The Writer of a ____ Agreement Makes Settlement Payments When