Jan 102013
 

An interest rate cap is a derivative in which the buyer receives payments at the end of each period in which interests rates exceed the agreed strike price (a pre-determined price).

More on banking and finance terms tomorrow, so please come back for more on what the meaning is of words like Caps.

Example of Caps in use?

Can you provide an example of ‘Caps’? If so you could win 100 GBP of Amazon vouchers. Please comment below and one person will be selected at random on [date]. Thank-you

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