THE ORIGINAL SWAP IS PAY-FIXED, IMPLYING THAT THE OFFSETTING...

Section 5

The original swap is pay-fixed, implying that the offsetting swap would be pay-floating. A

receiver swaption provides its owner with the right to enter a pay-floating (receive-

fixed) in a swap at the exercise fixed rate, whereas a payer swaption provides the right

to enter the swap in a pay-fixed position.