noun
An option giving the buyer the right to enter into a swap agreement by a specified date.
Origin of swaption
Blend of swap optionswaption
swap·tionTHE AMERICAN HERITAGE® DICTIONARY OF THE ENGLISH LANGUAGE, FIFTH EDITION by the Editors of the American Heritage Dictionaries. Copyright © 2016, 2011 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.
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"swaption." YourDictionary, n.d. Web. 14 January 2019. <https://www.yourdictionary.com/swaption>.
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swaption. (n.d.). Retrieved January 14th, 2019, from https://www.yourdictionary.com/swaption
Noun
(plural swaptions)
- (finance) An instrument granting the owner an option to enter an interest rate swap.
English Wiktionary. Available under CC-BY-SA license.
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Cite this page
MLA Style
"swaption." YourDictionary, n.d. Web. 14 January 2019. <https://www.yourdictionary.com/swaption>.
APA Style
swaption. (n.d.). Retrieved January 14th, 2019, from https://www.yourdictionary.com/swaption
swaption - Investment & Finance Definition
Common slang for swap options. A swaption is an over-the-counter option on an interest rate swap, which allows one party to swap an interest-paying investment at a certain price and time in the future with another party. Just as in the case of ordinary options, this contract gives the holder the right, but not the obligation, to enter into an interest rate or currency swap on prearranged terms.
Webster's New World Finance and Investment Dictionary Copyright © 2010 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
Used by arrangement with John Wiley & Sons, Inc.
Link to this page
Cite this page
MLA Style
"swaption." YourDictionary, n.d. Web. 14 January 2019. <https://www.yourdictionary.com/swaption>.
APA Style
swaption. (n.d.). Retrieved January 14th, 2019, from https://www.yourdictionary.com/swaption
