Swaption

{
  "id": "MLC-T-INS-003262",
  "term": "Swaption",
  "field": "Insurance and risk management",
  "definition": "An option contract granting the holder the choice to enter into a specified swap agreement with a counterparty on or before a certain date. The buyer pays a premium for this right, which protects against unfavorable movements in interest rates or other underlying variables. A payer swaption gives the holder the right to enter a swap where they pay a fixed rate, while a receiver swaption grants the right to receive a fixed rate.",
  "url": "https://mlchart.com/terminology/insurance/swaption/"
}