Explain why a sticky cap is more expensive than a similar ratchet cap.

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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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Explain why a sticky cap is more expensive than a similar ratchet cap.

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In a ratchet cap the cap rate equals the previous reset rate plus a spread In the n...View the full answer

Options Futures and Other Derivatives

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