Amortizing Option(redirected from Amortizing Options)
An option in which the underlying asset is an interest rate or an interest rate swap. In both cases, the notional amount over which the interest rate is calculated gradually decreases (or is "amortized") over time. The amount by which it decreases is usually tied to repayment on a loan or other liability.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved