What is the term for a call option that takes into account interest rates and includes several exercise dates?

World Stock Markets MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

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Subject
World Stock Marketsfinance-mcqs › world-stock-markets
Published
13 May 2023
Last updated
28 May 2026

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Explanation

A floor is a type of interest rate option that provides protection against rates falling below a certain level. A cap, on the other hand, is a call option on interest rates with multiple exercise dates, limiting the maximum interest rate payable. Swap multipliers and notional multipliers are terms related to swaps but do not describe this type of option.

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