标题: Problem: Receiver swaption and Intercorporate Investment [打印本页] 作者: jim8z3 时间: 2013-4-17 18:32 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: zephyranalyst 时间: 2013-4-17 18:32
1. All three methods report same NI; consolidation reports MI in equity
2. Similar to call option, option to receive fixed at a specified strike, becomes more valuable as fixed rates drop作者: tango_gs 时间: 2013-4-17 18:32
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.作者: smartpants 时间: 2013-4-17 18:32
I guess we can call it a call option on a bond but not interest rates. Correct me if I am wrong.作者: Valores 时间: 2013-4-17 18:32
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.
