Floater with gearing/factor

[Jvm]

Hi,
if we have a floater referencing the 3M EURIBOR and the floater has the coupon formula: Factor * 3M EURIBOR + Spread, is it then correct to use just calculate the forward rate, multiply this by the factor and add the spread? Or does one need more sophisticated models for this?

 

[IntoDarkness]

Generally yes but is there any optionality in your floater? Some hidden ones such as coupon floor or ceiling also count

 

[Jvm]

I would be interested in both:
- a plain vanilla floater with such formula
- a floater with such formula having a cap and a floor