A. swaps multiplier
B. notion multiplier
C. floor
D. cap
✅ The correct answer is option C.
Put option considering interest rates and have multiple exercise dates is classified as floor. Floors set a minimum interest rate payment because if interest rates fall below the strike rate the floor holder is protected; payments are calculated the same as caps.
Put option considering interest rates and have multiple exercise dates is classified as floor. Floors set a minimum interest rate payment because if interest rates fall below the strike rate the floor holder is protected; payments are calculated the same as caps.