Chpt 8 Interest Rate Risk Flashcards
1
Q
Interest rate guarantee
Borrowing co
A
Buy call option
2
Q
Interest rate guarantee
Investing company
A
But put option
3
Q
Interest rate options
Borrowing company
A
Buy put option
4
Q
Interest rate options
Lending company
A
Buy call option
5
Q
Bid
A
Pay for receiving LIBOR
6
Q
Ask
A
Receive in exchange for paying LIBOR