Cape (finance)

A course is a financial credit pertaining to the family of the options on rate of interest.

The purchase of a course aims at securing a maximum level (price of exercise or strike) on an index of revisable rate while benefitting from a possible stability or drops by this revisable rate. The purchaser of course pays a premium with the salesman of course.

The purchase of a course and the sale of a Floor of different prices of exercise constitute a Collar, while the purchase of a course and the sale of a floor of the same price of exercise make it possible to create in a synthetic way a swap.

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