How much time does it take to conquer these two? I read a few times and losing my mind especially the Swaptions.
Swaptions aren’t difficult… Here’s the big picture The Option is to enter into a Swap. So either I’ll receive a fixed rate or a floating rate, if I enter into a Swap… Understand whether a Option will be exercised on a Swap. Payer Option == > I’ll exercise my Option to pay a fixed rate. Why would I pay a fixed rate? Coz I’ll receive a higher floating rate. Receiver Option ==> I’ll receive a fixed rate. Why would I receive a fixed rate ? Coz the floating rates are lower to pay If you exercise, then you’re gonna receieve a fixed amount per quarter/semi-annual/annual period. Use discounting factors to get the PV of the Annuity/Payments Nothing too complicated 
Thanks Rahul. Interesting blog