An interest rate cap is a series of
A. Call options
B. Put options
C. Periodical payments
D. Differential payments
Answer: Option A
Solution (By Examveda Team)
An interest rate cap is a series of Call options. Call options are financial contracts that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity or other asset or instrument at a specified price within a specific time period.This Question Belongs to Management >> International Finance And Treasury
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