OTC Interest Rate Option
Definition
OTC Interest Rate Option. An option that tracks the cap and floor of an underlying interest rate.
Issues and Challenges
No reason not to be a Cap or a floor. For example a Bond Option which also controls interest rate but it not referred to as an interest rate option (see Bond Options section). Also some IR Futures options (exchange traded) that are not. Also Swaption is a single option on a swap. Origin: SME Review comment during exchange traded options reviews: There are instruments that track the cap and floor of an underlying LIBOR, TIBOR rate. These are options. Term Origin; SME Review
Disclaimer
This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.
| IsDefinedBy URI of an entity that is defined via an imported vocabulary. | https://spec.edmcouncil.org/fibo/ontology/DER/RateDerivatives/IROptions/index-en.html + |
