ninja1024

cpk123 Wrote:
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> you enter into a payer swaption to pay fixed.
> you would enter into it if the price of the fixed
> portion is < Strike Price.
>
> If you are thinking in terms of Put or Call
> options on a bond -- The fixed price would fall
> below the strike price for a bond when the
> Interest rate rises - and you have the option to
> then PUT the bond back.
>
> (P)ayer Swaption=(P)ut option on BOND
>
> So Re(C)eiver Swaption - likewise would be (C)all
> option on Bond.


Thanks yet again, a lot clearer in my head now!