Editing Interest rate cap and floor (section)

===As a bond put===
It can be shown that a cap on a LIBOR from ''t'' to ''T'' is equivalent to a multiple of a ''t''-expiry put on a ''T''-maturity bond. Thus if we have an interest rate model in which we are able to value bond puts, we can value interest rate caps. Similarly a floor is equivalent to a certain bond call. Several popular [[short-rate model]]s, such as the [[Hull–White model]] have this degree of tractability. Thus we can value caps and floors in those models.