If you are short a swap…you receive fixed, yes?
Caveat: Unless specified otherwise in the problem.
LETS START ANOTHER 10 PAGE THREAD!
HAHA… I was just saying that Assume that UNLESS it says they ARE LONG
Extension to swap + option: Payer swaption (aka put swaption) - give the buyer the right to be the fixed rate payer (and floating rate receiver). Receiver swaption (aka call swaption) - give the buyer the right to be the floating rate payer (and fixed rate receiver).