interest rate option

(redirected from Interest Options)

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Monthly interest options are available for all of Nationwide's Fixed Rate Bonds, e-Bonds and Fixed Rate ISAs.
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. For those savers who prefer it, interest can be paid on a monthly basis or, at maturity (or annually in the case of the two-year deposit).
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.
Check out zero per cent interest options at www.moneysupermarket.com, but look closely at the transfer balance charge, which can be as much as three per cent.
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.
All of nationwide's fixed rate bonds and e-bonds also have monthly interest options available.