Examveda
Examveda

Put option considering interest rates and have multiple exercise dates is classified as

A. swaps multiplier

B. notion multiplier

C. floor

D. cap

Answer: Option C

Solution(By Examveda Team)

Put option considering interest rates and have multiple exercise dates is classified as floor. Floors set a minimum interest rate payment because if interest rates fall below the strike rate the floor holder is protected; payments are calculated the same as caps.

This Question Belongs to Management >> International Finance And Treasury

Join The Discussion

Related Questions on International Finance and Treasury