put swaption

put swaption definition - finance
A swaption is an option to enter into an interest rate swap at a specified future date with the put giving the purchaser the right, but not the obligation, to pay a fixed interest rate. Swaption is short for swap option, which is an over-the-counter option on an interest rate swap.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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