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Long-Dated Swaption


An option on a swap (a swaption) which expires after more than a year (e.g. 1, 2 or 3 years). The option would allow the holder to enter into a swap in the future beyond commonly prevalent option maturities.

It is a long-dated option whose underlying is a swap.



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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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