19. In an interest rate cap and floor, the buyer pays an upfront fee, which represents the...

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19. In an interest rate cap and floor, the buyer pays an upfront fee, which represents the maximum amount that the buyer can lose and the maximum amount that the seller of the agreement can gain.

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Measuring And Controlling Interest Rate And Credit Risk

ISBN: 9780471268062

2nd Edition

Authors: Frank J. Fabozzi, Steven V. Mann, Moorad Choudhry

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