Question
For the below of statement, state whether it is TRUE or FALSE and EXPLAIN the reason. Consider a cap and a floor that have identical
For the below of statement, state whether it is TRUE or FALSE and EXPLAIN the reason.
Consider a cap and a floor that have identical notional principals, payment dates and the cap rate equals the floor rate. The value of the cap is equal to an equivalent fixed rate payer swap plus the floor.
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Fundamentals Of Investments Valuation And Management
Authors: Bradford D Jordan, Thomas W. Miller Jr., Steven D. Dolvin
6th Edition
0073530719, 9780073530710
