floorlet
floorlet noun: 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.
Noun
floorlet (plural floorlets)
- 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.
Forms of floorlet
| plural | floorlets |
|---|
Origin of floorlet
From floor + -let.
Questions about floorlet
- What does floorlet mean?
- Floorlet means 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.
- What part of speech is floorlet?
- Floorlet is a noun.
- What is the plural of floorlet?
- The plural of floorlet is floorlets.
Words near floorlet in the dictionary
Source and license
Adapted from Wiktionary: floorlet (page history and authors). Text available under the Creative Commons Attribution-ShareAlike 4.0 license. Word.ws reformatted the entry and added links. Wiktionary data of 2026-09-02.
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Cite this entry: “floorlet.” Word.ws, https://word.ws/floorlet. Based on Wiktionary, CC BY-SA 4.0.