A company caps 3 -month LIBOR at (10 %) per annum. The principal amount is ($ 20)

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A company caps 3 -month LIBOR at $10 \%$ per annum. The principal amount is $\$ 20$ million. On a reset date, 3-month LIBOR is $12 \%$ per annum. What payment would this lead to under the cap? When would the payment be made?

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Options Futures And Other Derivatives

ISBN: 9780132164948

8th Edition

Authors: John C. Hull

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Question Posted: Mar 04, 2024 07:00 AM

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A company caps 3 -month LIBOR at (10 %) per annum. The principal amount is ($ 20)

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