I am using Kaplan and haven’t had a chance to look at the curriculum but I saw a thread from a few years ago that didn’t provide a definite answer.
For interest rate calls and puts you pay the premium which is “financed” through a loan. At option expiration i.e beginning of the loan, you pay the premium loan back along with the receipt/lending of the loan proceeds.
For interest rate caps and floors, I see it mentioned in the question that a premium is paid but not accounted for in the solution.
Am I missing something here?