A structured note that allows the investor to set a range at the start of each coupon period so that if the floating rate sticks to the range at the end of the period, the investor will receive the floating rate in addition to a specific spread. Otherwise, the note simply expires, with the investor getting nothing.
The range or band is not prespecified in the contract but is defined by the investor at the start of each coupon period. The range might be represented by its midpoint. It is usually selected so as to allow the investor to receive the highest payout.
An example of chooser notes is the so-called range chooser accrual note (or chooser range accrual note).
This note is also known as a chooser range note.
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