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Cap and Floor

An option-based strategy that is designed to establish a costless position and secure a return. It is a type of...

Ratchet Cap

A nonstandard interest rate cap in which the cap rate for each caplet is equal to the sum of the...

Digital Cap

A digital option that constitutes a cap combined with a European upper barrier. More specifically, it is an option whose...

PAUG Cap

It stands for pay-as-you-go cap; an interest rate cap that requires its holder to pay only a small upfront premium...

Pay-As-You-Go Cap

An interest rate cap that requires its holder to pay only a small upfront premium compared to corresponding standard caps,...

Delayed Start Cap

An interest rate cap that has a forward start date. In other words, the cap comes into effect at some...

Deferred Cap Floating Rate Note

A capped floating rate note that is associated with a deferred cap. In other words, it comes with a maximum...

Deferred Cap FRN

A capped floating rate note (capped FRN) that is associated with a deferred cap. In other words, it comes with...

Capped Swap

An interest rate swap which involves the exchange of fixed rate payments for “capped” floating rate payments. The floating rate...

Forward-Start Cap

An interest rate cap that has a forward start date. In other words, the cap comes into effect at some...