Talk:Swaption
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[edit] Lingo
"Swaptions are relatively vanilla instruments in today's financial markets", I like the financial lingo. - Jerryseinfeld 00:19, 30 Nov 2004 (UTC)
[edit] "Bermudan"
Not sure if that is correct. The proper adjectival form of "Bermuda" is "Bermudian", so if it's the adjective you want, that's the correct spelling. Noel (talk) 20:11, 23 September 2005 (UTC)
Bermudan is the correct adjective.
[edit] Zaire
Zaire is since 1997 The Democratic Republic of the Congo, but I guess it doesn't matter for the example.
[edit] Swaps vs. Swaptions
The two examples fail to clarify the reason why one would want an option on a swap vs. just a swap - there's a cash flow mention in the first example, and none in the second. The swap hedges the interest-rate contingency - what is the option itself hedging?
Also - these examples suggest that swaps themselves are just bets on interest rate directions. Swaps aren't necessarily pure bets on the direction of interest rates - they are also used to hedge interest-rate-sensitive liabilities without requiring the purchase of large quantities of underlying fixed- or variable-rate assets. Gary 15:21, 26 September 2005 (UTC)
