An interest rate collar can be structured by 1 Buying an int
An interest rate collar can be structured by 1 Buying an interest rate cap and selling an interest rate floor 2) Buying an interest rate cap and buying an interest rate floor 3) Selling an interest rate cap and selling an interest rate floor 4) Selling an interest rate cap and buying an interest rate floor
Solution
A collar consists of buying an interest rate cap and selling an interest rate floor
so option A is the correct answer
