Interest Rate Floor


An Interest Rate Floor is a contract that guarantees a minimum level of interest rate. A Floor can be guaranteed for one particular date. In return for making this guarantee, the buyer pays a Premium. Floors generally guarantee a minimum level of either 3 or 6 month LIBOR or whatever the prevailing floating rate index is in a particular market.


Interest Rate Swap
Interest Rate Cap
Interest Rate Collar
Currency Swap
FX Option


 
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