abstract:In finance, a default option, credit default swaption or credit default option is an option to buy protection (payer option) or sell protection (receiver option) as a credit default swap on a specific reference credit with a specific maturity. The option is usually European, exercisable only at one date in the future at a specific strike price defined as a coupon on the credit default swap.
Assuming Papandreou and his new finance minister, Evangelos Venizelos, manage to push their agenda through parliament, European policymakers are fettering over whether a debt roll over or a debt swap option will provide them with the best means to avoid a creditdefault and a change in credit ratings. (Read Papanderou Loses Support As Eurozone Hopes To Aver Contagion).