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Cross-Currency Floor

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Islamic Finance

Ba’i al-Muwasafah

November 11, 2022
Islamic Finance

Ba’i al-Murawadah

November 11, 2022

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A cash-settled option that sets a minimum limit (floor/ interest rate floor) on the spread between two benchmark interest rates each denominated in a different currency.

This option is usually settled in one of the two underlying currencies.

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  • Cash-Settled-Option
  • Derivative
  • Derivatives
  • Floor
  • Interest-Rate-Floor
  • Option
  • Spread
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