An option giving the buyer the right to enter into a swap agreement by a specified date.(noun)
American Heritage(R) Dictionary of the English Language, Fifth Edition. Copyright (c) 2011 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.
Use "swaption" in a sentence
"A swaption is a type of option that grants its owner the right, but not the obligation, to enter a swap agreement, typically involving interest rates."
"Capital index measuring expectations for rate volatility, based on so-called swaption prices, fell 5.8 percent since Dec. 15."
"In a letter to the Turnpike received Wednesday, UBS Securities said a Turnpike insurer's bond rating has fallen so much that UBS can terminate a so-called swaption agreement made in"