Share this entry

Share this page

swaption

Syllabification: swap·tion
Pronunciation: /ˈswäpSHən
 
/

Definition of swaption in English:

noun

Finance
An option giving the right but not the obligation to engage in a swap.
Example sentences
  • But at least I could read up on swaps, options and swaptions while I was delayed.
  • What we use are pretty simple things that are called interest-rate swaps, where we turn a short-term instrument into a longer-term instrument, or options or ‘swaptions.’
  • How the hell was anyone even supposed to understand all this with its ‘puts’ and ‘calls’, ‘options’ and ‘swaps and ‘swaptions’ in currency, bonds, stocks and interest rates?

Origin

1980s: blend of swap and option.

Definition of swaption in:

Share this entry

Share this page

 

What do you find interesting about this word or phrase?

Get more from Oxford Dictionaries

Subscribe to remove adverts and access premium resources

Top searches

= trending
Word of the day vicarious
Pronunciation: vɪˈkɛːrɪəs
adjective
experienced in the imagination through another person's feelings…