标题: Problem: Receiver swaption and Intercorporate Investment [打印本页] 作者: dreampak 时间: 2011-7-13 16:46 标题: Problem: Receiver swaption and Intercorporate Investment
2 quick question guys
1. Is Net Income and Equity same under Equity,Proportionate Consolidation and Consolidation? If not where does the difference come from? I got this one confused.
2. Is receiver swaption same as a call option on interest? To me it seems like a put option.
Help me out guys.作者: madaochenggong 时间: 2011-7-13 16:46
I still dont get the call option thing. If it becomes more valuable as rates drop it seems like a put option to me.
For example, a caplet is a call option and when interest rates rise caplet value rises. Here its just the opposite.
Edited 1 time(s). Last edit at Wednesday, June 2, 2010 at 01:48AM by kh.asif.作者: SeanWest 时间: 2011-7-13 16:46
I guess we can call it a call option on a bond but not interest rates. Correct me if I am wrong.作者: iteracom 时间: 2011-7-13 16:46
Receiver swaption is the option to receive fix rate. i.e. you will benefit if interest rates drop.... hence, it's a put option on interest rates, and a call option on the bond.
