genuinecfa

for Caps/Floors - 1 cap means buying a series of call options.

e.g.

one 2-year interest rate cap, its value =
one 1-year interest rate call, plus
one 2-year interest rate call.

think it as you're standing on time 0, you buy 2 call options for year 1 and year 2
that's the same as a interest rate cap, which offers you the same protection.