Examveda
Examveda

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.

This Question Belongs to Management >> International Finance And Treasury

Join The Discussion

Related Questions on International Finance and Treasury