Interest options and strategies

Options

• Utilisation possible with loans
• Only compensatory payment between the reference and agreed fixed rate is made
• Required accounting as with derivative
• Client pays the bank so-called premium for option

Floating interest rate with limitation against decrease (FLOOR) gives client a possibility to set a minimum interest rate level for a long-term investment.

Interest COLLAR

• Cost-free solution for ensuring the minimum and maximum interest rate
  Possibility to participate in the eventual interest rate decrease (with loan)

For a detailed description of the Standard Financial Instruments and their associated risks click here.