A futures option whose underlying is a specific interest rate. The holder of such an option, by exercising it, obtains a position in the underlying futures contract. In addition to that position, a cash payoff is made to settle the futures. Interest rate futures increase in value when interest rates fall and decrease in the opposite case.
Notice: Undefined variable: myString in /hermes/bosnacweb04/bosnacweb04ai/b1550/ipg.lantanasolutionsbh98965/fincyclopedia/wp-content/themes/independent/template-parts/post/content-single.php on line 41
Comments