interest rate cap and floor 全部释义和例句>> 利率上下限 interest 英[ˈɪntrəst] 美[ˈɪntrɪst, -tərɪst, -ˌtrɛst]n. 利息; 兴趣，爱好; 利害关系，利益; 趣味，感兴趣的事;vt. 使产生兴趣; 使参与，使加入; ...
➢therelationshipbetweenacapandfloorandoptions➢howtovaluecapsandfloors➢howaninterest-ratecollarcanbecreated Interest-RateSwaps ➢Inaninterest-rateswap,twoparties(calledcounterparties)agreetoexchangeperiodicinterestpayments.➢Thedollaramountoftheinterestpaymentsexchangedisbasedonapredetermineddollarprincipal,...
Interest-Rate Caps and Floors (continued) Valuing Caps and Floors The arbitrage-free binomial model can be used to value a cap and a floor. This is because a cap and a floor are nothing more than a package or strip of options. More specifically, they are a strip of European options on...
B. buying a series of interest-rate puts and selling a series of interest rate calls. C. buying a series of interest-rate puts and calls. 相关知识点: 试题来源: 解析 A A cap is equivalent to a series of (long interest-rate calls and selling a floor is equivalent to selling a series...
Buying an interest-rate cap and selling an interest-rate floor is equivalent to: A. buying a series of interest-rate puts and selling a series of interest rate calls. B. buying a series of interest-rate puts and calls. C. buying a series of interest-rate calls and selling a series of...
In this article, we estimate the payoff of an interest rate cap and floor on a LIBOR with different interest rates from a collar interest rate. An interest rateSocial Science Electronic Publishing
Interest rate cap: A cap involves using interest rate options to set a maximum interest rate for borrowers. If the actual interest rate is lower, the option is allowed to lapse. Interest rate floors: A floor involves using interest rate options to set a minimum interest rate...
Related to Interest-Rate Caps:Interest rate floor ceiling interior upper surface of a room:The entryway had a high ceiling.; a maximum limit; vertical boundary, cloud cover Not to be confused with: sealing– using an adhesive agent to close or secure something:She used sealing wax on the ...
Interest rate swaps require two separate entities to agree on the swapping of an asset, typically involving the exchanging of fixed-rate debt for floating-rate debt. Interest rate floor and interest rate cap contracts can provide a different alternative to the exchanging of balance sheet assets in...
dollar interest rate cap and floor markets. We evaluadoi:10.2139/ssrn.314878Gupta, AnuragSubrahmanyam, Marti GSocial Science Electronic PublishingGupta, A., Subrahmanyam, M. G., 2005. Pricing and hedging interest rate options: Evidence from cap-floor markets. Journal of Banking and Finance 29, ...