Use

Swaptions are options on a Swap , which you can exercise on a certain date or within a certain period. As the buyer, you can choose whether to pay fixed interest rates or whether to receive fixed interest rates after the option has been exercised. You pay a premium to the seller for this right upon conclusion of the transaction.

Activities

On the entry screen, first enter the exercise data and the option premium. You then enter the basic data for the swap using the underlying instrument.

The Basic Data comprises:

Prerequisites

When you create the swaption product type, you have to maintain the swap product type as the underlying instrument (see the section on defining product types in the Implementation Guide).