Swaption

Credit Default Option (CDO)
A Credit Default Option (CDO) is an option that grants the holder the right, but not the obligation, to enter into a credit default swap at a predetermined price on a specified future date. It is a form of swaption and is used to hedge against credit risk.
Swaption
A swaption is an option that grants the holder the right, but not the obligation, to enter into an interest rate swap agreement. It is a useful financial instrument for managing interest rate risk.

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