wht is floor price????
This query is : Resolved
CA Lokesh Pokharna
(Querist)
03 June 2010
wht is floor price????
Rahul Gupta
(Expert)
03 June 2010
Floor price is the minimum coupon rate on the options. If the coupon formula produces a coupon rate below the floor , the floor rate is paid instead. Thus, it is an attractive feature for the investor.
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