Swaption
A swaption is an option to enter into an interest rate swap where a specified fixed rate is exchanged for floating. |
Similar financial terms
Put swaptionA financial tool in which the buyer has the right, or option, to enter into a swap as a floatingrate payer. The writer of the swaption therefore becomes the floating-rate receiver/fixed-rate payer.
Call swaption
A swaption in which the buyer has the right to enter into a swap as a fixed-rate payer. The writer therefore becomes the fixed-rate receiver/floating rate payer.
