Sandi A caplet is an options contract where the underlying asset is a interest rate. The buyer of the caplet pays a premium to the seller for the right, but not the obligation, to receive a payment if the interest rate exceeds a certain strike price. A caplet is similar to a call option, except the … Read more
The loan-to-value (LTV) ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. The LTV ratio is one of the key risk factors that lenders assess when qualifying borrowers for a mortgage. A higher LTV ratio suggests more risk because the loan amount … Read more
