10. Do they have to hedge using caps only? Can floors do as well? Explain your answer...

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10. Do they have to hedge using caps only? Can floors do as well? Explain your answer graphically.

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Principles Of Financial Engineering

ISBN: 9780123735744

2nd Edition

Authors: Salih N. Neftci

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Question Posted: Oct 26, 2024 10:01 AM

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10. Do they have to hedge using caps only? Can floors do as well? Explain your answer graphically.
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9. In particular, is this a position on the direction of rates or something else? In fact, can you explain why the professionals had to hedge their position using caps or floors?
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10. Do they have to hedge using caps only? Can floors do as well? Explain your answer...

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Principles Of Financial Engineering

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