Business and Personal Finance Dictionary

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• CAPLET - An Interest Rate Option to pay fixed in an FRA (q.v.). Its payoff is proportional to that of a...
  
  
• CAPM - See Capital Asset Pricing Model.
  
  
• CAPPED LOAN - Loan where the interest rate is not allowed to exceed a set level for a period of time, b...
  
  
• CAPPED PARTICIPATING PREFERRED STOCK - preferred stock whose participating feature is limited so that a...
  
  
• CAPPED RATE - An interest rate charged on a mortgage where there is a guarantee from the mortgagee that...
  
  
• CAPPED-RATE MORTGAGE - The mortgage interest rate cannot go above a certain level, even if mortgage rat...
  
  
• CAPPED-STYLE OPTION - A capped option is an option with an established profit cap or cap price. The cap...
  
  
• CAPPING - The process at of laying two to four feet of soil over the top of a landfill site and then pl...
  
  
• CAPS - Caps are limits on the amount that the interest rate on an Adjustable Rate Mortgage can change a...
  
  
• CAPS (INTEREST) - Consumer safeguards which limit the amount the interest rate on an adjustable rate mo...