interest rate option

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Interest Rate Option

An option contract giving the holder to buy (for a call) or sell (for a put) a security with a certain interest rate at a given strike price on or before the expiration date. An interest-rate option is useful to hedge the interest rate risk inherent to portfolios consisting mainly of bonds.

interest rate option

An option contract on interest-bearing securities or on a futures contract on interest-bearing securities. These options are generally used as a means to manage the risk of a bond portfolio.
References in periodicals archive ?
Those consumers now have choices for financing their jewelry gifts, and paying for those items by choosing from a number of a financing plans and 0% interest options.
under certain conditions, a combination of both the principal and interest options (the Combination Option).
Zurich's new survivorship life policy, Zurich Survivor Index Universal Life, is designed to jointly insure two individuals while providing index-linked interest options and flexible premiums.
It offers savers the choice of up to three interest options.
In addition, the website is fully equipped with an advanced advertisement banner management system for online digital advertisement campaigns and programs, offered by Methaq to its partners having different demographic, segments and Interest options to reach a wide range of online targets audience.
Mr Rice said the financial package included a high degree of flexibility, not only in that funds would be drawn when required, but also in terms of interest options and capital repayments.
Athena Indexed Universal Life(SM) is a flexible premium universal life insurance policy with index-linked interest options.
The new rates for annual interest options will include:
The pricing of interest options presents significant challenges to market practitioners.
Fixed Interest Accumulation Annuities: single and multiple funded contracts with portfolio, guaranteed or annual interest lock-in type interest options, fund sweeps across investment vehicles * Equity Index Annuities: multiple index choices, participation rates and caps * Variable Accumulation Annuities: unlimited sub-accounts (including ability to co-mingle all account types within a contract, Living Benefits GMIB, GMAB & GMWB) * Fixed Interest and Variable Immediate Annuities: premium/deposit sourcing, emergency withdrawals, commuted values, sub-account reallocation, multiple interest rates and a variety of payment option schemes
The rates for the monthly interest options of the notice accounts are: