今日浩气小编给我们介绍一下InterestRateCapsandFloors，下面便跟小编往下看下吧！

AninterestratecapisactuallyaseriesofEuropeaninterestcalloptions(calledcaplets),withaparticularinterestrate,eachofwhichexpireonthedatethefloatingloanratewillbereset.Ateachinterestpaymentdatetheholderdecideswhethertoexerciseorletthatparticularoptionexpire.Inaninterestratecap,theselleragreestocompensatethebuyerfortheamountbywhichanunderlyingshort-termrateexceedsaspecifiedrateonaseriesofdatesduringthelifeofthecontract.Interestratecapsareusedoftenbyborrowersinordertohedgeagainstfloatingraterisk.

(Currentmarketrate–CapRate)xprincipalx(#daystomaturity/360)

FloorsaresimilartocapsinthattheyconsistofaseriesofEuropeaninterestputoptions(calledcaplets)withaparticularinterestrate,eachofwhichexpireonthedatethefloatingloanratewillbereset.Inaninterestratefloor,theselleragreestocompensatethebuyerforaratefallingbelowthespecifiedrateduringthecontractperiod.Acollarisacombinationofalong(short)capandshort(long)floor,struckatdifferentrates.Thedifferenceoccursinthatoneachdatethewriterpaystheholderifthereferenceratedropsbelowthefloor.Lendersoftenusethismethodtohedgeagainstfallinginterestrates.

Thecashpaidtotheholderisasfollows:

(Floorrate–Currentmarketrate)xprincipalx(#daystomaturity/360)