Why is a receiver swaption called a call swaption and a payer swaption called a put swaption? I can’t see it that way. (it is easy to memorize). Some help please! Thanks
Didn’t someone just post this on LII? It’s because a payer (receiver) swaption pays off the same as a bond put (call).
Damn interest rate and bond price direction!!! Put on interest is call on bond. Got it now…thanks.