Buying a cap is like buying insurance against a decrease in interest rates.
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Q46: An FI would normally purchase a cap
Q47: The payoff of a credit spread call
Q48: A hedge with futures contracts increases volatility
Q49: An FI buys a collar by buying
Q50: A digital default option expires unexercised in
Q52: As of 2015, commercial banks had listed
Q53: Buying a put option truncated the downside
Q54: The premium on a credit spread call
Q55: Option positions that do not identifiably hedge
Q56: Buying a floor means buying a put
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