If a firm sells a floor at 6% this will:
A) pay the holder the LIBOR interest below the 6%.
B) pay the firm 6% on their purchase.
C) pay the holder the LIBOR interest above 6%.
D) limit the amount of borrowing to 6% of assets.
E) None of these.

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The Answer of If a firm sells a floor at 6% this will:
A) pay the holder the LIBOR interest below the 6%.
B) pay the firm 6% on their purchase.
C) pay the holder the LIBOR interest above 6%.
D) limit the amount of borrowing to 6% of assets.
E) None of these.

If a Firm Sells a Floor at 6% This Will