CIMAPRA19-F03-1 practice question 24 of 35
G purchased a put option that grants the right to cap the interest on a loan at 10.0%. Simultaneously, G sold a call option that grants the holder…
Choose your answer, then check it against the explanation.
G purchased a put option that grants the right to cap the interest on a loan at 10.0%. Simultaneously,
G sold a call option that grants the holder the benefits of any decrease if interest rates fall below
8.5%.
Which THREE possible s would be consistent with G's behavior?
Question 24 of 35
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