23-42 Buying a floor means buying a put option on interest rates.

Name: 23-42 Buying a floor means buying a put option on interest rates.
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Buying a floor is a type of financial derivative that provides the holder with protection against falling interest rates. It works like a put option, giving the holder the right to sell at a specified price (strike rate) if interest rates fall below that level. Therefore, buying a floor is similar to buying a put option on interest rates.

23-42 Buying a Floor Means Buying a Put Option on Interest