Interest Rate Option difference, between

dandman

What's the difference between a IR Cap and IR call?

yospaghetti

can u post it here, i dont see it

Kapie

Thanks a lot, any nice explanation for my question on Eurodollar Futures?

CPATrader

thanks, so just to be thorough, they are priced the same way?

jarobi04

essentially yes: (IR Rate - Cap/Call Rate)(n/360)(notional amount)

(Floor/Put Rate - IR Rate)(n/360)(notional)

**with caplets and floorlets, since they pay in arrears, discount the above results by (1+rate)

needhelp1700

nothing, they are one in the same