An option that confers to its holder the right to enter into a specific Type of swap Transaction at or by a pre-determined expiration date as either a payer or receiver of the fixed interest rate. Some types of swaption incorporate a forex component that can be used by a Hedger to protect a Series of cash flows in a currency other than their Domestic Currency.

Browse by Subjects

Related Terms

Put Swaption
Call Swaption
Black's model
See All Related Terms »

Popular Terms In Forex

consumer protection
soft market
clearing system
Swiss Options and Financial Futures Exchange