An interest rate CAP can be defined as:
A. A series of American call options on FRAs
B. A series of European call options on FRAs
C. A series of American put options on FRAs
D. A series of European put options on FRAs
Answer:B
An interest rate CAP can be defined as:
A. A series of American call options on FRAs B. A series of European call options on FRAs C. A series of American put options on FRAs D. A series of European put options on FRAs