Derivatives

Shark Forward Extra

July 8, 2020
Derivatives

Call Swaption

July 8, 2020

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A call option on a swap in which the buyer has the right, but is not obliged, to enter into a swap in which he/she pays the fixed rate and receives the floating rate. Payer swaps increase in value as interest rates rise, and vice versa.

This type of swap is also called a call swaption.

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