Swap option

Also found in: Dictionary, Thesaurus, Legal, Encyclopedia.

Related to Swap option: swaption

Swap option

See: Swaption. Related: Quality option.

Swaption

An option in which the buyer of the option has the right to enter into to an interest rate swap. The terms of the swaption specify whether the buyer will be the payer of the floating rate or the payer of the fixed rate. It is called a swaption because it is an option on a swap. A swaption is useful if an interest rate swap may be useful for the buyer's investment strategy, but there is still some uncertainty as to whether that will be the case. See also: Call swaption, Put swaption, Plain vanilla swap.

Mentioned in ?

References in periodicals archive ?

The IndusInd Bank CEO, Romesh Sobti, said that with tenure of borrowing and hedge matching, the flexibility to raise one-year funds to avail swap options has also reduced in risk.

-IndusInd bank planning USD300m overseas issue

But Occupy leaders said yesterday the MBTA is paying $26 million for swap options that went bad.

Protesters slam MBTA fares hikes, service cuts

We believe that this association with Property Swap Shop, will augment the strong track record of both our companies in creating and managing property swap options for our clients both in both countries," commented Peter Penhall, Chief Executive, Gowealthy.com

Gowealthy's Prop Swap inks deal with Property Swap Shop, UK's leading property swapping portal

Liverpool would have to pay about pounds 15m and have several fringe players as swap options. City have fought off previous interest in Richards, but with takeover talks and doubts about Pearce's future they may feel it's time to cash in.

Football: RAFA RICH PICKINGS; EXCLUSIVE BARCLAYS PREMIERSHIP Kop boss to beat Jose in pounds 15m Micah race

O'Leary knows AC Milan's money and the attraction of Serie A may turn Viduka's head and he is preparing for the worst by doing his homework on the swap options now.