Filter by Categories
Accounting
Banking

Derivatives




Interest Rate Option


A type of interest rate derivative; a contract (an option) which gives the holder the right without the obligation to pay or receive a preset interest rate (called the strike) on a specific notional amount for a specific period of time. The option holder thereby has the right to lock in a future rate today. Like most options, interest rate options come in two basic forms: interest rate calls and interest rate puts.

Interest rate options could also refer to caps or floors.



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 ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*