Why are swaptions a useful interest rate derivative? Give an example to explain your answer.

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An Introduction to Derivative Securities Financial Markets and Risk Management

ISBN: 978-0393913071

1st edition

Authors: Robert A. Jarrow, Arkadev Chatterjee

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Question Posted: Dec 02, 2015 04:02 AM

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Why are swaptions a useful interest rate derivative? Give an example to explain your answer.

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Swaptions are a useful interest rate derivative because they enable the holder to enter into a swap ...View the full answer

An Introduction to Derivative Securities Financial Markets and Risk Management

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