Definition of swaption in English:

swaption

Syllabification: swap·tion
Pronunciation: /ˈswäpSHən
 
/

noun

Finance
  • An option giving the right but not the obligation to engage in a swap.
    More 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.

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