A swaption which gives the holder the right, but not the obligation, t to enter into an inflation-indexed swap (which constitutes the underlying swap). There are principally two types of inflation-indexed swaptions: the zero coupon inflation indexed swaption (ZCIISO) and the year-on year inflation indexed swaption (YYIISO).
Derivatives
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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