download (1)Today, I was thinking, what to write on and was confused whether to discuss on some current market situation or to go with some basic concept again for our finance freshers.  And, finally decided to write on SWAPTION, so as to add a thought again to our “back to School Series”.

Swaption was first introduced by William Lawton in 1983 while he was facilitating First Interstate Bank in Los Angeles as the Head Trader for Fixed Income Derivatives.

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