An OTC interest rate option which protects an investor against falls in interest rates below a specified level is called a floor.

Name: An OTC interest rate option which protects an investor against falls in interest rates below a specified level is called a floor.
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A floor is a type of OTC interest rate option that provides protection against interest rates falling below a specified level, ensuring a minimum interest rate for the investor.

An OTC Interest Rate Option Which Protects an Investor Against