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

Question

The company could use interest rate options to set a floor to manage its interest rate risk this Statment Is True Or False?
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Solution 1

The statement is True. The company could use interest rate options, specifically interest rate floor options, to manage its interest rate risk. An interest rate floor is a series of European put options or floorlets on a specified reference rate, usually LIBOR. The buyer of the floor receives money Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob

Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv

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