In a 'Plain Vanilla Swap' the Swap Buyer Agrees to Make

question 68

Multiple Choice

In a 'plain Vanilla swap' the swap buyer agrees to make:

• A)fixed-interest payments to the swap seller on a loan that is originally floating, but which is then modified through the use of derivatives to turn it into a fixed-rate loan
• B)fixed-interest payments to the swap seller on a loan that is originally fixed, but which is then modified through the use of derivatives to turn it into a floating-rate loan
• C)floating-interest payments to the swap seller on a loan that is originally floating, but which is then modified through the use of derivatives to turn it into a fixed loan
• D)None of the listed options are correct.

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