noun🔗ShareAn instrument granting the owner an option to enter an interest rate swap."The company bought a swaption to protect itself against rising interest rates on its loan, giving it the right, but not the obligation, to enter into an interest rate swap at a later date. "businessfinanceChat with AIVocabulary GamePractice Reading
noun🔗ShareMore generally, an option on any type of swap."My uncle purchased a swaption on his mortgage payments, giving him the option to switch to a different interest rate in the future. "businessfinanceChat with AIVocabulary GamePractice Reading
