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
See All Related Terms »
post a credit
American Psychological Association (APA):
Chicago Manual of Style (CMS):
Modern Language Association (MLA):