Floor: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson m (Add category.) |
imported>Doug Williamson (Add definition.) |
||
| Line 1: | Line 1: | ||
''Options trading and hedging'' | ''Options trading and hedging''. | ||
| Line 15: | Line 15: | ||
The same option, regardless of the motivation for buying or selling it. | The same option, regardless of the motivation for buying or selling it. | ||
4. | |||
Any other structure resulting in a minimum value, rate or price, or the resulting value, rate or price itself. | |||
Revision as of 23:37, 12 January 2022
Options trading and hedging.
1.
An option hedging structure which effectively establishes a minimum worst case hedged rate or price for a cash inflow or an asset, while allowing the holder of the floor to retain the potential benefit of favourable higher market rates or prices.
2.
The option bought in order to establish the floor hedging structure.
3.
The same option, regardless of the motivation for buying or selling it.
4.
Any other structure resulting in a minimum value, rate or price, or the resulting value, rate or price itself.
