Allows the exchange of the nature of application rates and funding.
This derivative enables users to reduce the cost of liabilities and increase the profitability of assets, as well as to hedge against adverse rate fluctuations. Among the Swap Options registered in B3 are:
- Swaption to Term - You are allowed to enter the Swap at a future date, previously agreed upon.
- Compound Swaption - The Swap starts on the record date, but there is an option to continue or fold the contract from a predetermined date.
- Repayment Option - gives the right to withdrawal (call back swaption) for the participant who pays the premium.
In the first two cases, the payment of premiums occurs at the beginning of the contract or in the exercise of the option.