A payer (receiver) zero-coupon swaption is an option which gives the holder the right to enter into a payer (receiver) zero-coupon interest rate swap for a prespecified swap rate at a prespecified time. A counterparty holds that right during a pre-defined period so that if exercise is favorable, the swap comes into effect. Otherwise, the option expires worthless.

It is also called a zero-coupon inflation-indexed swaption.