What does swaption mean?
Definitions for swaption
swap·tion
This dictionary definitions page includes all the possible meanings, example usage and translations of the word swaption.
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Wiktionary
swaptionnoun
An instrument granting the owner an option to enter an interest rate swap.
Wikidata
Swaption
A swaption is an option granting its owner the right but not the obligation to enter into an underlying swap. Although options can be traded on a variety of swaps, the term "swaption" typically refers to options on interest rate swaps. There are two types of swaption contracts: ⁕A payer swaption gives the owner of the swaption the right to enter into a swap where they pay the fixed leg and receive the floating leg. ⁕A receiver swaption gives the owner of the swaption the right to enter into a swap in which they will receive the fixed leg, and pay the floating leg. In addition, a "straddle" refers to a combination of a receiver and a payer option on the same underlying swap. The buyer and seller of the swaption agree on: ⁕the premium of the swaption ⁕length of the option period, ⁕the terms of the underlying swap, including: ⁕notional amount ⁕the fixed rate ⁕the frequency of observation for the floating leg of the swap
Numerology
Chaldean Numerology
The numerical value of swaption in Chaldean Numerology is: 8
Pythagorean Numerology
The numerical value of swaption in Pythagorean Numerology is: 9
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"swaption." Definitions.net. STANDS4 LLC, 2024. Web. 23 Apr. 2024. <https://www.definitions.net/definition/swaption>.
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