Provide an intuitive explanation of why a ratchet cap increases in value as the number of factors

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Provide an intuitive explanation of why a ratchet cap increases in value as the number of factors increase.

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Options Futures and Other Derivatives

ISBN: 978-0134472089

10th edition

Authors: John C. Hull

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Question Posted: Feb 12, 2018 12:33 PM

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Provide an intuitive explanation of why a ratchet cap increases in value as the number of factors

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A ratchet cap tends to provide relatively low payoffs if a high low interest rate at o...View the full answer

Options Futures and Other Derivatives

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