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ACI

3I0-012 · Question #419

The seller of a floor:

The correct answer is B. Pays compensation if a reference interest rate falls below an agreed level. See the full explanation below for the reasoning.

Question

The seller of a floor:

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

(42 responses)
  • A
    7% (3)
  • B
    81% (34)
  • C
    2% (1)
  • D
    10% (4)

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