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

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.