what does a swaption swap option tell you 
swaptions come in two main types a payer swaption and a receiver swaption in a payer swaption the purchaser has the right but not the obligation to enter into a swap contract where they become the fixed rate payer and the floating rate receiver a receiver swaption is the opposite i e the purchaser has the option to enter into a swap contract where they will receive the fixed rate and pay the floating rate swaptions are over the counter contracts and are not standardized like equity options or futures contracts thus the buyer and seller need to both agree to the price of the swaption the time until expiration of the swaption the notional amount and the fixed floating rates beyond these terms the buyer and seller must also agree whether the swaption style will be bermudan european or american these style names have nothing to do with geography instead referring to the methodology in which the swaption will be executed 