A ____ gives its owner the right to enter into a swap.

Name: A ____ gives its owner the right to enter into a swap.
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A swaption is an option to enter into a swap at a future date. The owner of a swaption has the right, but not the obligation, to enter into the swap. A basis swap involves exchanging cash flows based on different interest rate benchmarks. A callable swap gives the issuer the right to terminate the swap early, while a putable swap gives the investor the right to terminate the swap early.

A ____ Gives Its Owner the Right to Enter into a Swap