- This topic has 3 replies, 2 voices, and was last updated 4 years ago by
.
Viewing 4 posts - 1 through 4 (of 4 total)
- Posts
Dear Tutor,
I have slight confusion on interest rate option, as it is bit different than a usual option.
Suppose if we are borrower and on the loan start date the actual future price we calculate turns out to be greater than the strike price, we do still calculate the loss on option, right?
No. If exercising the option would result in a loss then it won’t be exercised.
Viewing 4 posts - 1 through 4 (of 4 total)
- The topic ‘Interest rate Options’ is closed to new replies.