Risk Management - Cap/Floor calculations - 360 or 365 days

CFA Level III
#1

Do we always take the number of days to be used in the cap/floor calculations as 360 days? especially when we have the exact number of days to use for our calculation.

If you look at schweser, reading 28, practice problem 9 (page 161) we should be able to use 365 days here but the book has used 360 days.

Any thoughts?

#2

Is this regarding buy a cap or a floor on a loan?..

If so, then any equations involving LIBOR should be on a 360 day basis. However when you go to calculate the final effective interest rate over the time period you use a 365 day convention.