Encyclopedia > Interest rate cap

  Article Content

Interest rate cap

An Interest rate cap is a series of European call options or "caplets" on a specified reference rate, usually LIBOR. The buyer of the cap receives money if on the maturity of any of the caplets, the reference rate exceeds the agreed strike price of the cap.

All Wikipedia text is available under the terms of the GNU Free Documentation License

  Search Encyclopedia

Search over one million articles, find something about almost anything!
  Featured Article
The Rise And Fall Of Ziggy Stardust And The Spiders From Mars

... US on September 1, 1972. The single "Starman" was released on April 28, 1972 to promote the album. The name may come from Iggy Pop (singer, friend of Bowie) and/or ...