Meaning of “swaption” in the English Dictionary

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"swaption" in Business English

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swaptionnoun [ C ]

uk /ˈswɒpʃən/ us FINANCE

the right to make a swap on or by a particular date in the future, for example the right to exchange a fixed interest rate for a lower, variable one:

If the swaption is not exercised by maturity, it expires worthless.

(Definition of “swaption” from the Cambridge Business English Dictionary © Cambridge University Press)