Question
why the simultaneous purchase of an interest rate cap and sale of an interest rate floor is the same conceptually as receiving a floating rate
why the simultaneous purchase of an interest rate cap and sale of an interest rate floor is the same conceptually as receiving a floating rate and paying a fixed-rate on an interest rate swap? and why It also has the same impact of selling a financial futures contract.
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International Finance Transactions Policy And Regulation
Authors: Hal Scott, Anna Gelpern
20th Edition
1609303164, 978-1609303167
