The company could use interest rate options to set a floor to manage its interest rate risk this Statment Is True Or False?

This statement is True.

Interest rate options, such as interest rate caps and floors, are financial derivatives that can be used to manage interest rate risk effectively. By setting a floor, a company can protect itself from falling interest rates, ensuring that the yield on its investments does not drop below a certain level. This can be particularly beneficial for companies with variable-rate debt, as it provides a safety net against decreasing interest payments.

In essence, interest rate floors serve as a risk management tool that can stabilize earnings and cash flows in a fluctuating interest rate environment, allowing the company to plan its financial future with greater confidence.