Derivatives
Knock-Out Cap
November 23, 2022
Derivatives
Break Out
November 23, 2022

A barrier floor whereby protection exists or activates only if the floating interest rate crosses the barrier (the pre-defined knock-in level) on a resetting/ rollover date.

For example, if the reference rate ended up, on a rollover date, below 3.5%, then the floor activates and protection against further declines (beyond 3.5%) will be in effect.

 

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