- Joined
- 2/13/10
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- Points
- 28
The definition given in FRM handbook is:
Call swaption is "option to pay floating and receive fixed", while I also see the opposite definition("pay fixed") from a lot of places.
What's the definition in the industry? Conventionally, people treat it as a call on bond or a call on interest rate?
Call swaption is "option to pay floating and receive fixed", while I also see the opposite definition("pay fixed") from a lot of places.
What's the definition in the industry? Conventionally, people treat it as a call on bond or a call on interest rate?