Interest rate cap and floor

id: interest-rate-cap-and-floor-196-16961171
title: Interest rate cap and floor
text: In finance, an interest rate cap is a type of interest rate derivative in which the buyer receives payments at the end of each period in which the interest rate exceeds the agreed strike price. An example of a cap would be an agreement to receive a payment for each month the LIBOR rate exceeds 2.5%. Similarly, an interest rate floor is a derivative contract in which the buyer receives payments at the end of each period in which the interest rate is below the agreed strike price. Caps and floors
brand slug: wiki
category slug: encyclopedia
description: Type of interest rate derivative
original url: https://en.wikipedia.org/wiki/Interest_rate_cap_and_floor
date created:
date modified: 2023-08-28T23:37:27Z
main entity: {"identifier":"Q205175","url":"https://www.wikidata.org/entity/Q205175"}
image:
fields total: 13
integrity: 14

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