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wht is floor price????

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(Querist)
03 June 2010 wht is floor price????
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Rahul Gupta

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Rahul Gupta (Expert)
03 June 2010 Floor price is the minimum coupon rate on the options. If the coupon formula produces a coupon rate below the floor , the floor rate is paid instead. Thus, it is an attractive feature for the investor.

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