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ACI

3I0-013 · Question #67

What deals are usually associated with a collar?

The correct answer is B. A purchase of a floor and a sale of a cap or vice versa. See the full explanation below for the reasoning.

Question

What deals are usually associated with a collar?

Options

  • AA purchase of a cap and a sale of a cap at higher reference rate
  • BA purchase of a floor and a sale of a cap or vice versa
  • CA purchase of a cap and a purchase of a floor
  • DA purchase of a step-up cap and a sale of a step-down floor

How the community answered

(27 responses)
  • A
    7% (2)
  • B
    78% (21)
  • C
    4% (1)
  • D
    11% (3)

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Full 3I0-013 Practice