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Step-Up Cap

A cap structure that limits interest payment increase to a specific amount (called a jump) at each date the underlying...

Contingent Premium Cap

A contingent premium option in which the option is a cap (interest rate cap), where the holder is not required...

Contingent Cap

An interest rate cap whereby the buyer of the cap pays no up-front premium. Instead, he agrees to pay a...

One-Way Floater

A floater (FRN) in which coupon payments are subject to a floor set at the preceding coupon payment and a...

Corridor

A combination of two interest rate caps, literally: a long position in an interest rate cap and a short position...

Total Capitalization

The combination of long-term debt, preferred stock, and common stock. Generally speaking, it is the market value of equity plus...

Credit Collar

A variation of an equity collar that allows investors to generate cash proceeds while still receiving downside protection (though at...

Interest Rate Cap

An OTC interest rate derivative, or simply a contract on an interest rate whereby the seller (or the writer) pays...

Multiperiod Option

An option structure in which the payout depends on the value of the underlying on several points in time (e.g.,...

Multi-Period Option

An option structure in which the payout depends on the value of the underlying on several points in time (e.g.,...