The put option considering interest rates and have multiple exercise dates is classified as __________?
Correct answer: C. floor
- A. swaps multiplier
- B. notion multiplier
- C. floor
- D. cap
Explanation
An interest-rate floor is composed of put-like options called floorlets and protects against rates falling below a specified level, with multiple exercise dates. A cap uses call-like options and protects against rising rates.
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