For firms that may need to enter into a swap in the future,a forward swap serves as well as a swaption.

Name: For firms that may need to enter into a swap in the future,a forward swap serves as well as a swaption.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A forward swap is not equivalent to a swaption. A swaption is an option to enter into a swap at a specified future date, while a forward swap is a binding agreement to enter into a swap on a specific future date.

For Firms That May Need to Enter into a Swap