Buying a floor means buying a put option on interest rates.

Name: Buying a floor means buying a put option on interest rates.
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When a person buys a floor, it means they are paying a premium to protect themselves against decreasing interest rates. This is similar to buying a put option on interest rates, which gives the holder the right but not the obligation to sell at a specified price (strike price).

Buying a Floor Means Buying a Put Option on Interest