An interest rate floor in which there is, contrary to a regular floor (vanilla floor), no direct dependency between the reference rate and the frequency of both reset and payment dates. For example, in a regular floor, if the reference rate is based on six-month LIBOR, the floor’s reset and payment must take place semiannually. If the reference rate is based on three-month LIBOR, resetting and payment are carried out quarterly or every three months.
In contrast, in a general floor, there is no dependency between the reference rate and the resetting and payment frequencies. As such, the reference rate could be six-month LIBOR, with a quarterly resetting frequency and a monthly payment frequency.
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