) Assess the volatility risk with an investment in a derivative, using an interest rate cap or floor in today’s marketplace.

) Assess the volatility risk with an investment in a derivative, using an interest rate cap or floor in today’s marketplace.

A.) Assess the volatility risk with an investment in a derivative, using an interest rate cap or floor in today’s marketplace. Indicate whether or not you would advise financial institutions to engage in this type of investment.
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