aidebaobao

if add , buy reciever swaption
if remove ,sell

Darien

long/short receiver swaption? Can't explain anything...now.

I'm also wondering why not use interest rate options directly.



Edited 1 time(s). Last edit at Sunday, May 15, 2011 at 04:59PM by deriv108.

zwjy

selling receiver swaption = call option on bond

If bond is callable, you sell the receiver swaption to remove the call. makes sense?