Quick swap question..

cfacfacfa · June 4, 2008, 2:10pm

If you are short a swap…you receive fixed, yes?

s23dino · June 4, 2008, 2:11pm

correct.

pimp · June 4, 2008, 2:13pm

Correct.

bigwilly · June 4, 2008, 2:17pm

Caveat: Unless specified otherwise in the problem.

comp_sci_kid · June 4, 2008, 2:20pm

LETS START ANOTHER 10 PAGE THREAD!

bigwilly · June 4, 2008, 2:32pm

HAHA… I was just saying that Assume that UNLESS it says they ARE LONG

pmoonoi · June 4, 2008, 2:39pm

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).