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Equity Index LIBOR- Linked Installment Premium Opt
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An equity index installment option with the level of each installment premium determined by the level of LIBOR on the date the installment is due. The LIBOR link can be set to cause small or relatively large changes in the installment premium level as interest rates change. The reason for this pattern might be to reflect the investor or dealer's view of the link between interest rates and the level of the equity index.
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Glossary *
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