Oct 212019

An interest rate floor is composed of a series of interest rate options which pay out if rates fall below the floor level (strike). Can be used to guarantee a minimum return on floating rate invested funds (whilst still taking advantage of higher rates should they occur).

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 Posted by at 1:08 am  Tagged with:

  2 Responses to “Floor Definition”

  1. Very complicated to understand

  2. Used by investors who are risky

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