economicz

Still seems like a shit question to me. Here is why:
CPK is right, payer swaption resembles a put ON A BOND. But these are talking about rates, not bonds. A Receiver swaption lets you enter as a fixed rate payer, so you are long the rate because you think its going to go up and you benefit if it does since you can pay the lower fixed rate than the current higher market rate.
Because the higher rate would cause a bond price to fall, it is like a put on a bond, but since we are talking about interest rates, it’s more like a call. I think the question they asked you sucked, they should be specific as to whether it resembles a put on a bond or on the interest rate, anyone else wanna back me up on this?