ACI

3I0-012 · Question #344

The buyer of a cap:

The correct answer is C. Receives compensation if a reference interest rate rises above an agreed level. See the full explanation below for the reasoning.

Question

The buyer of a cap:

Options

AReceives compensation if a reference interest rate falls below an agreed level
BPays compensation if a reference interest rate falls below an agreed level
CReceives compensation if a reference interest rate rises above an agreed level
DPays compensation if a reference interest rate rises above an agreed level

How the community answered

(28 responses)

A
7% (2)
B
11% (3)
C
79% (22)
D
4% (1)

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