Hi, though i see many books talking about the interest rate derivatives, but it's hard for me to imagine any contract in the real world, do anyone have the sameple confirmation or termsheet of these interest rate derivatives(ie. caps..floor...swaptions....)?thanks for the sharing...

I have actually never seen these options free-standing, but always embedded into a bond or note (then again, I'm not an IR trader . Have you tried searching for term sheets of capped floaters, etc.?

We sell a lot of Plain vanilla Caps, Floors, a bit less of Swaptions (they are more embedded in customized Certificats of DEposits)But let's say that it's close to that :CAPTenor : 3 MonthReference Index : Euribor 3 MonthStrike : 6%trade DAte : 09/12/2003Start Date : 11/12/2003Maturity Date : 11/12/2008(Some stuffs about Settlement n shea)You can add options likeIn-Arrear : Yes

QuoteOriginally posted by: appletHi, though i see many books talking about the interest rate derivatives, but it's hard for me to imagine any contract in the real world, do anyone have the sameple confirmation or termsheet of these interest rate derivatives(ie. caps..floor...swaptions....)?thanks for the sharing...Trust me they do exist in the real world and get much more complicated than just Caps/Floors/Swaps and Swaptions. It may be hard to imagine that people actually trade derivatives if you've never worked in a financial institution. If you want proof, just call a broker (Tullets, InterCapital etc..) and ask them to send you a sample terms and conditions.