Q559
Put option considering interest rates and have multiple exercise dates is classified as
A.
swaps multiplier
B.
notion multiplier
C.
floor
AnswerD.
cap
Answer: Option C
Solution
Answer: Option C
Solution:
Put option considering interest rates and have multiple exercise dates is classified as floor. Floors set a minimum interest rate payment because if interest rates fall below the strike rate the floor holder is protected; payments are calculated the same as caps.