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If the reference interest rates is below the interest rate floor exercise rate on a settlement day, _______. Answer the seller of an interest rate
If the reference interest rates is below the interest rate floor exercise rate on a settlement day, _______.
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| the seller of an interest rate floor will pay the buyer the difference in the rates based on the notional principal | ||
| the buyer of an interest rate floor will pay the seller the difference in the rates based on the notional principal | ||
| the seller of an interest rate cap will pay the buyer the difference in the rates based on the notional principal | ||
| the buyer of an interest rate cap will pay the seller the difference in the rates based on the notional principal |
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Derivatives Markets
Authors: Robert L. McDonald
2nd Edition
032128030X, 978-0321280305
