Position which occurs because of selling floor and buying cap is classified as
A. floating collar
B. fixed collar
C. currency collar
D. collar
Answer: Option D
Solution(By Examveda Team)
Position which occurs because of selling floor and buying cap is classified as collar. A collar, commonly known as a hedge wrapper, is an options strategy implemented to protect against large losses, but it also limits large gains.Related Questions on International Finance and Treasury
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