Floor: Difference between revisions
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imported>Doug Williamson m (Spacing 27/8/13) |
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''Options trading and hedging.'' | ''Options trading and hedging.'' | ||
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. | 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. | ||
== See also == | == See also == | ||
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* [[Interest rate floor]] | * [[Interest rate floor]] | ||
* [[Notional amount]] | * [[Notional amount]] | ||
Revision as of 13:53, 27 August 2013
Options trading and hedging.
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.
