Swaption

The swaption, an advanced structured derivative product consisting of a combination of swaps and options, offers our customers a range of alternatives in order to protect them from interest rate risks which may arise to long-term cash flows.

In the swaption agreement, which provides the option to enter, or not to enter, a swap agreement under certain conditions and for a certain period of time in the future, the party purchasing the right commits to pay a certain premium for this right on the date on which the transaction is conducted. The party has the opportunity to manage their investments under a more flexible structure.

Detailed information on the taxation of futures transactions is provided here.