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Which of the following is true about an interest rate cap? (Select all that apply.) a) Long positions in interest rate caps are often used

Which of the following is true about an interest rate cap? (Select all that apply.)

a) Long positions in interest rate caps are often used to hedge exposure to falling interest rates

b) They can be used to put a cap on floating-rate payments on a loan

c) They consist of a basket of call options on interest rates, each referred to as a "caplet

d) They can be easily purchased by retail investors using a brokerage account

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