Range notes are:
A)securities that usually pay low interest rates.
B)securities that pay interest only if the underlying index moves out of the predetermined range.
C)securities that pay interest only if the underlying index stays in the predetermined range.
D)usually issued as putable securities.
E)securities with pay-off similar to a financial future.

Question

Quizplus · Accepted Answer

Range notes are securities that pay interest only if the underlying index stays in the predetermined range. They are structured as hybrid instruments that combine characteristics of fixed income securities and options.

Range Notes Are