swaptions and cancelling a swap

[thespacebar]

What I dont get is how does a swaption cancel a swap if the new swap period created by the swaption starts after the old swap period ends

 

[S2000magician]

A swaption that is intended to cancel an existing swap isn’t for a swap that starts after the old swap ends; it’s for a new swap that starts when the swaption is exercised and ends when the old swap ends.