RELATIONSHIP BETWEEN SWAPTIONS AND BOND OPTIONS (CONTINUED)  At the start of the swap the floating-rate bond is worth par so that the swaption can be viewed as an option to exchange a fixed-rate bond for par  An option on a swap where fixed is paid and floating is received is a put option on the bond with a strike price of par  When floating is paid and fixed is received, it is a call option on the bond with a strike price of par 19
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