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If a lender wishes to buy an OTC interest rate collar to hedge its exposure to a future decrease in interest rates this would require

If a lender wishes to buy an OTC interest rate collar to hedge its exposure to a future decrease in interest rates this would require it to:

A buy a floor at one exercise price, sell a cap at a lower exercise price

B buy a cap at one exercise price, sell a floor at a lower exercise price

C buy a cap and sell a floor at the same exercise price

D. buy a floor at one exercise price, sell a cap at a higher exercise price

Noted if is the borrower wishes is what answer?

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