Search
Generic filters
Filter by Categories
Accounting
Banking

Derivatives




Range Knock-Out Floating Rate Note


A structured note (a floating-rate note) that provides the holder with higher interest payment (coupons) than an ordinary floating rate note but at the expense of suspension of interest payment for an entire period (usually one quarter) if the underlying reference rate slips outside the specified range for one day over the course of its lifetime.

By composition, this floating rate note consists of a vanilla floating rate note and a strip of embedded knock-out options.



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    Your email address will not be published.*