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Collar |
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CollarAn upper and lower limit on the interest rate on a floating-rate note (FRN) or an adjustable-rate mortgage (ARM).CollarA protective options strategy in which a written call and a long put are taken against a previously owned long stock position. The options may have the same strike price or different strike prices and the expiration months may or may not be the same. Also called a fence.Similar MatchesCap & collar mortgageCap & collar mortgageThis is a mortgage that has both a top and bottom limit set for the interest rate. It is a very safe and risk free type of mortgage, as you are protected against intetrest rate rises above a certain point, but you are losing some of the potential gains if interest rates drop. Cap and collar rateCap and collar rateA mortgage which guarantees the interest rate charged will remain sandwiched between two specified levels. |
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