A payer zero-coupon inflation-indexed swaption is an option which gives the holder the right to enter into a payer zero-coupon interest rate swap for a prespecified swap rate at a prespecified time. On the contrary, a receiver zero-coupon inflation-indexed swaption is an option which gives the holder the right to enter into a receiver zero-coupon interest rate swap for a specific swap rate at a preset time.

It is called for short a zero-coupon swaption.