How can caps, floors, and collars be used to hedge interest rate risk?

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Financial Markets and Institutions

ISBN: 978-0077861667

6th edition

Authors: Anthony Saunders, Marcia Cornett

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Question Posted: Jan 27, 2015 08:47 AM

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How can caps, floors, and collars be used to hedge interest rate risk?

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Buying a cap means buying a call option or a succession of call options on interest rates Specifical...View the full answer

Financial Markets and Institutions

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