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AppleBanana Bank invests in a floating-rate note priced at LIBOR + 200 basis points. Which one of the following is true? AppleBanana Bank is exposed

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AppleBanana Bank invests in a floating-rate note priced at LIBOR + 200 basis points. Which one of the following is true? AppleBanana Bank is exposed to interest rate decreases and it should buy put options on bonds. AppleBanana Bank is exposed to interest rate decreases and it should buy call options on bonds. AppleBanana Bank is exposed to interest rate increases and it should buy call options on bonds. AppleBanana Bank is exposed to interest rate increases and it should buy put options on bonds

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