A single component of a quanto cap. In other words, it is a caplet whose payout is payable in a given currency, while its premium is denominated in another. A caplet is an interim cap component in a multi-period cap agreement. For example, a 3-year quanto cap may be composed of 6 quanto caplets each of which covers a 6-month period. A given quanto caplet may give the holder the right to receive the difference (in a currency other than the one in which its premium is denominated) between the spot rate and the strike if it is positive, or zero otherwise.