Interest Rate Collar

Hi sir,

For borrowing, we will buy put option (cap) and sell call option (floor). As I know, we will exercise our put option if the future LIBOR rise above the cap strike price. But what if the future LIBOR is exactly equal to cap strike price (At the money), what should we do then?
1) exercise?
2) simply let it to lapse?
3) or do nothing?

As with other borrower’s or lender’s options, we will:
In the money option – Exercise it
Out the money option – Let it lapse
At the money option – What should we do?

Is swaption within the syllabus of P4?

Thank you sir, hope to hear from you soon.

Best regards
Esther Pang