A put option on the level of an interest rate is called an interest rate ____________.
A) spread
B) swap
C) collar
D) cap
E) floor

Name: A put option on the level of an interest rate is called an interest rate ____________. A) spread B) swap C) collar D) cap E) floor
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An interest rate floor is a series of put options on an interest rate, ensuring that the rate will not fall below a certain level. This is used to protect against falling interest rates.

A Put Option on the Level of an Interest Rate