Interest Rate Swaption
Interest
Rate Swaption
|
|
The buyer pays the seller of swaption to have the
option to excise an interest rate swap
Has American vs European
Payer swaption: Buyer has the right to be a fixed rate
payer
Receiver swaption: Buyer has the right to be a fixed
rate receiver
Use Swaption to cancel an interest rate swap
May 11th, 2009 in
CFA - LEVEL 3 Posted by Editor