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Interest Rate Collar

An interest rate derivative which protects the buyer from changes in floating rates above and below a specified range. With...

PIRA

An acronym for participating interest rate agreement; an interest rate collar that allows an investor or borrower to mitigate or...

Cap and Floor

An option-based strategy that is designed to establish a costless position and secure a return. It is a type of...

Choice Min-Max Option

A compound option which enables the holder to lock into a range of an asset price or interest rate (or...

Base Rate Collar

An interest rate collar that defines a maximum level and minimum level for the underlying base rate. In other words,...

Interest Rate Collartion

An option on an interest rate collar. It gives its holder the right, without the obligation, to trade a collar...

Amortizing Option

An option whose underlying asset is an interest rate (hence called: an interest rate option) or an interest rate swap...

Amortizing Collar

An interest rate collar (collar - collar option) which covers notional principal amounts (NPAs) decreasing on a scheduled basis. Amortization...