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Derivatives




B-Floor


It stands for a bounded floor. A modified interest rate floor in which the total payout is limited (bounded). The payout is similar to that of an interest rate floor, though limited over the life of the floor to a fixed monetary amount. This feature renders the B floor less expensive than a typical interest rate floor, but at the expense of the protection it provides in comparison with a standard floor.



ABC
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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