Filter by Categories
Accounting
Banking

Derivatives




Knock-In Floor


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.

 



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    Your email address will not be published.*