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Interest Rate Option
(redirected from Interest-Rate Option)

   Also found in: Wikipedia 0.01 sec.
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.


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Already boasting leading brokerage desks in multi-currency interest-rate options and Scandinavian swaps, as well as highly-regarded Yen and Dollar derivative and deposit teams, the joint venture is positioned to take full advantage of the new economic and currency environment in Europe.
 
 
 
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