Collar

{
  "id": "MLC-T-INS-000811",
  "term": "Collar",
  "field": "Insurance and risk management",
  "definition": "A hedging structure that combines a cap on one side with a floor on the other, so that the result of an exposure stays inside a band between two limits. A common example is an interest rate collar, where the buyer purchases a cap and sells a floor, and the premium received for the floor offsets part of the cost of the cap.",
  "url": "https://mlchart.com/terminology/insurance/collar/"
}