Assertion: call's option | /r/HasProperty | equivalent
Facets:
value: to the american option
type: OTHER
value: to suitable floorlets
type: OTHER
Source sentences:
text: European Put options on zero coupon bonds can be seen to be equivalent to suitable caplets, i.e. interest rate cap components, whereas call options can be seen to be equivalent to suitable floorlets, i.e. components of interest rate floors.
text: In practice, one can calculate the Black–Scholes price of a European option that is equivalent to the American option (except for the exercise dates of course).