asked 187k views
1 vote
The writer of a ____ agreement makes settlement payments when LIBOR is less than the striking rate of the agreement.

A. Swap
B. Cap
C. Floor
D. Collar
E. None of the above

asked
User Jmills
by
7.6k points

1 Answer

2 votes

Final answer:

The writer of a cap agreement makes settlement payments when LIBOR is less than the striking rate of the agreement.

Step-by-step explanation:

The writer of a cap agreement makes settlement payments when LIBOR is less than the striking rate of the agreement.

answered
User Janfoeh
by
8.6k points
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