What deals are usually associated with a collar?
A. A purchase of a cap and a sale of a cap at higher reference rate
B. A purchase of a floor and a sale of a cap or vice versa
C. A purchase of a cap and a purchase of a floor
D. A purchase of a step-up cap and a sale of a step-down floor
Answer:B
What deals are usually associated with a collar?
A. A purchase of a cap and a sale of a cap at higher reference rate B. A purchase of a floor and a sale of a cap or vice versa C. A purchase of a cap and a purchase of a floor D. A purchase of a step-up cap and a sale of a step-down floor