Is the mathematical relation like below?
value of x year cap = value of 1 year caplet + value of 2 year caplet +… + value of x year caplet
Not sure if my understanding is correct…
Is the mathematical relation like below?
value of x year cap = value of 1 year caplet + value of 2 year caplet +… + value of x year caplet
Not sure if my understanding is correct…
yes