From ACT Wiki
(Difference between pages)
imported>Doug Williamson |
imported>Administrator |
| Line 1: |
Line 1: |
| 1.
| | Letter of Credit. |
| | |
| An option which pays out to the holder if the reference interest rate falls below the strike rate on the maturity date, or on a series of pre-agreed dates.
| |
| | |
| The effect of hedging interest income with a floor is to establish a minimum level for the hedged interest income achieved.
| |
| | |
| | |
| 2.
| |
| | |
| The hedged interest income profile achieved by the use of an option in combination with an underlying interest income exposure.
| |
| | |
| | |
|
| |
|
| == See also == | | == See also == |
| * [[Floor]] | | * [[Letter of credit]] |
| * [[Interest rate]]
| | |
| * [[Interest rate cap]]
| |
| * [[Interest rate collar]]
| |
| * [[Interest rate guarantee]]
| |
|
| |
|
| [[Category:Manage_risks]]
| |
Revision as of 14:19, 23 October 2012
Letter of Credit.
See also
