Floor rate on floating rate note

Hi everyone,

I`ve got a question regarding the floor on the floating rate note.

Why a floor on the floating rate note from bondholders perspective is equivalent to owning a series of calls on fixed income security.

From my point of view it should be a series of put options on fixed income security, since floor protects the bondholder whenever the floating rates (coupon rates) falls below the floor rate, hence keeping min coupon rate on the floor rate.

Can someone explain please?

Thanks many times,

I don’t use books other that the ones provided by the CFA. I went back to look at the CFA books and it makes no comparison between floor floaters and calls. It makes no comparison between floaters and any kind of options. I wont bother with this.