Aug 27, 2025 · Definition A swaption is a derivative that provides the right, but not the obligation, to enter into an interest rate swap agreement by a specified future date.

A swaption (a portmanteau of "swap" and "option") is an option granting its owner the right but not the obligation to enter into an underlying swap on specified terms at a future date.

What is a Swaption? A swaption (also known as a swap option) is an option contract that grants its holder the right but not the obligation to enter into a predetermined swap contract. In return for the …

Apr 4, 2025 · A swaption, or swap option, is a financial derivative that grants the holder the right — but not the obligation — to enter into an interest rate swap contract with specified terms. Swaptions are …

A swaption is a type of options contract that allows buyers to enter into a swap agreement at a specified interest rate for a specific period. It is not traded on a stock exchange, and the buyer must pay a …

Jul 12, 2023 · There are several types of swaptions, including payer swaptions, receiver swaptions, Bermudan swaptions, European swaptions, and American swaptions. Each type offers distinct rights …

Sep 5, 2025 · A swaption is a derivative contract that grants the right, but not the obligation, to enter into a predefined interest rate swap in the future. The buyer pays a premium upfront for this right, while …

A swaption is one of many types of interest rate options. They cleverly combine the terms “swap” and “option,” presenting itself as a unique financial derivative.

Jul 19, 2025 · Swaptions, or swap options, offer investors an opportunity to gain the right but not the obligation to enter into a future interest rate swap agreement. As a type of financial derivative, …

Jun 7, 2022 · A swaption is an option that gives buyer the right but not the obligation to enter into a swap contract on a specified date in the future.