Since Saputo has already entered into a trade, another option for Saputo is to enter into the interest limit option. Payments are designed to offset interest rate increases on an adjustable rate loan. A protective collar can also help manage interest rate risk. Collaring is achieved by simultaneously buying a cap and selling a floor (or vice versa), just as a collar protects an investor who has a long position on a stock. It is also possible to set up a zero-cost collar to reduce the cost of hedging, but this reduces the potential profit that would be gained from an interest rate movement in the company's favor, as it would put a cap on its potential