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

Westhampton Beach, New York

... The population density is 252.4/km² (654.2/mi²). There are 2,279 housing units at an average density of 302.4/km² (783.9/mi²). The racial makeup of ...