An interest rate floor is a series of European put options or floorlets on a specified reference rate, usually LIBOR. The buyer of the floor receives money if on the maturity of any of the floorlets, the reference rate is below the agreed strike price of the floor.
Read more about this topic: Interest Rate Cap And Floor
Famous quotes containing the words interest, rate and/or floor:
“Mr. Bok is giving the bird sanctuary as a tract of land at this place. He is dedicating it as a bird sanctuary and putting up these bells to interest the birds in music.”
—Calvin Coolidge (1872–1933)
“At this very moment,... the most frightful horrors are taking place in every corner of the world. People are being crushed, slashed, disembowelled, mangled; their dead bodies rot and their eyes decay with the rest. Screams of pain and fear go pulsing through the air at the rate of eleven hundred feet per second. After travelling for three seconds they are perfectly inaudible. These are distressing facts; but do we enjoy life any the less because of them? Most certainly we do not.”
—Aldous Huxley (1894–1963)
“Cats walk the floor at midnight; that enemy of fog,
The moon, wraps the bedpost in receding stillness....”
—Allen Tate (1899–1979)