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

Eurofighter

... for Greece; with an order for 24 units from Austria pending. In British service, the aircraft is supposed to replace the Tornado F3 and the Jaguar GR3A[?]. The Tornados ...