Interest rate options

CFA Level II Derivatives
#1

Hi,

Could someone pls help in decoding the various combniations that can be created with interest rate options.

  1. When the exercise rate =FRA spot, then long interest call option and short an interest rate put option is equivalent to receive floating n pay fixed FRA. ( Also the short call n long put case)

  2. Long interest rate cap n short interest rate floor with an exercise rate set at swap rate = receive floating n pay fixed swap.

I could not get them using equations corresponding to call n put options on interest rate.

Thanks.