Interest rate option

Wikipedia: Interest rate option

Interest rate option is a derivative financial instrument.

The global market for exchange-traded interest rate options is notionally valued by the Bank for International Settlements at $3,075,400 million in 2005.^{[citation needed]}

	Assume that you have a rich uncle who dies and in his will he leaves you with the following option You can have 100K today or 200K in 10 years Interest rates are 10 percent which should you choose? Read answer...
	Is a home equity loan a good option to pay off credit cards Does it change your interest rate that you have on your home? Read answer...
	When the credit card company gives you the option of closing your account instead of accepting their interest rate increase and you choose to close do they still charge you interest each month? Read answer...

Help us answer these

	You bought a home with a floating rate tied to CD rates a spread with an an option to fix the interest rate after one year. If you fix the rate will this cause your loan to become recourse?
	If the only option available were an annuity payment plan what could Larry do to maximize the value of his winnings assuming that the risk-free rate of interest is 5 percent?
	Discuss how IRAs work and what options you have choosing one IRA over another Be sure to define the payment that you would make and an example interest rate?

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Copyrights:

	Dividend Accumulation (insurance term)
	Interest Rate Options (in banking)
	Interest Option (insurance term)

See also