A swaption in which the underlying swap has a fixed tenor at the trade date. If the option is exercisable into a 5-year swap, the holder will have the right to enter into a swap with a 5-year tenor dating from the option’s exercise date. In this sense, the termination date of of the underlying swap depends on the date at which the swap is entered into, which is the date of exercising the swaption itself.
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