The current LIBOR rate is 4%. Which of the following interest rate collar will have the lowest cost?
A) buy interest rate put at exercise rate of 3.0%, sell interest rate call at exercise rate of 4.5%
B) buy interest rate put at exercise rate of 3.0%, sell interest rate call at exercise rate of 5.0%
C) buy interest rate put at exercise rate of 4.0%, sell interest rate call at exercise rate of 5.5% |