caplet

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See also: Caplet

English

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Etymology 1

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Blend of capsule +‎ tablet

Noun

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caplet (plural caplets)

  1. A smooth-coated tablet (pill, as in medicine) shaped like a capsule, used as a tamper-resistant alternative to a capsule, or an easy-to-swallow alternative to regular tablets.
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Etymology 2

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From cap (upper limit or ceiling) +‎ -let (diminutive suffix).

Noun

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caplet (plural caplets)

  1. (finance) A component of an interest rate cap, a derivative instrument that effectively prevents the interest payments on an otherwise variable-rate loan from exceeding an agreed level (the "cap"). Each "caplet", analysable as a call option, covers one interest accrual period (such as three months); the whole interest rate cap is made up of a series of consecutive caplets.
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