If a firm sells a floor at 6% this will:
A.pay the firm 6% on their purchase.
B.pay the holder the LIBOR interest below the 6%.
C.None of the statements.
D.limit the amount of borrowing to 6% of assets.
E.pay the holder the LIBOR interest above 6%.

On the off chance that the firm is selling the asset(floor) at 6%, it implies that the benefit is in contract and thus when selling the floor the holder of the floor should make installment to the mortgagee at LIBOR+6%, after which the deal will be concluded.

Therefore, the answer will be pay the holder LIBOR interest above 6%

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If a firm sells a floor at 6% this will: A.pay the firm 6% on their purchase. B.pay the holder the LIBOR interest below the 6%. C.None of the statements. D.limit the amount of borrowing to 6% of assets. E.pay the holder the LIBOR interest above 6%.

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If a firm sells a floor at 6% this will:
A.pay the firm 6% on their purchase.
B.pay the holder the LIBOR interest below the 6%.
C.None of the statements.
D.limit the amount of borrowing to 6% of assets.
E.pay the holder the LIBOR interest above 6%.