Put swaption(redirected from Put Swaptions)
An option on an interest rate swap in which the buyer of the option has the right to enter into an interest rate swap as the payer of the floating rate and the receiver of the fixed rate. This means that the seller (writer) is the receiver of the floating rate and payer of the fixed rate. This is an attractive option when interest rates are expected to rise as the buyer of the option would generally receive more in interest than he/she/it pays out. See also: Call swaption, Plan vanilla swap.