infinitybenzo

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@ Darkstar and @Wake2000

Don't sweat this. Just cram this: buy a receiver swaption = buy a call option and sell a receiver swaption = sell a call option. Don't bother yourself about how it works.

When a company issues a callable bond, it has bought a call option. To remove the call option, it has to sell the call option that was purchased. To sell the call option, simply sell a receiver swaption.