noun
Meaning 1
A component of an interest rate floor, a derivative instrument that effectively prevents the interest payments on an otherwise variable-rate loan from falling below an agreed level (the "floor"). Each floorlet, analysable as a put option, covers one interest accrual period (such as three months); the whole interest rate floor is made up of a series of consecutive floorlets.
Definition source: English Wiktionary via Wiktextract
Topics: business, finance
No example sentence was provided for this meaning.
Meaning relationships
Synonyms: none provided
Antonyms: none provided