How is buying a cap similar to buying a call option on interest rates?

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Financial Institutions Management A Risk Management Approach

ISBN: 978-0071051590

8th edition

Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders

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Question Posted: Dec 17, 2015 05:12 AM

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How is buying a cap similar to buying a call option on interest rates?

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If interest rates increase above the exercise rate the bu...View the full answer

Financial Institutions Management A Risk Management Approach

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