# Contingent swap (contingent interest rate swap)

- Canonical URL: https://www.gerhardmerk.de/contingent-swap-contingent-interest-rate-swap
- Post ID: 589827
- Modified: 2023-07-25T20:59:43+00:00
- Language: en

## Definition

Contract under which the terms of a future interest rate swap are fixed in advance. Against - payment of a premium, - the buyer of the option contract acquires - the right, but not the obligation, - to demand the conclusion of the interest rate swap within a contractually fixed period or - on a precisely fixed date. - Especially in times of - expected - strongly fluctuating interest rate movements, such an option contract offers the possibility to hedge against interest rate risks. - See cap, chooser cap, derivatives, European Master Agreement, futures markets, long-term culture, term premium, overnight rate swap, interest rate option, interest rate swap. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

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