Interest rate options

This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.

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October 17, 2018 at 7:07 pm #478971
maxpopper
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Sir when we say that interest rate options allow organization to limit its exposure to adverse interest rate movements while allowing it to take advantage of favourable interest rate movements.

So here, by Organization does it mean buyer/investor Or does it mean borrower?
October 18, 2018 at 8:22 am #479057
John Moffat
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The organisation is the company that is limiting its exposure to risk due to the fact that they are borrowing or depositing. It is therefore the company that is buying the options.
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