A "plain vanilla swap" is best described as a:
A) USD-EUR currency swap.
B) fixed for floating interest rate swap.
C) floating for floating interest rate swap.

Question

Quizplus · Accepted Answer

A plain vanilla swap typically refers to the simplest form of a swap, which is a fixed for floating interest rate swap. This involves one party exchanging fixed interest rate payments for floating rate payments from another party, usually based on a benchmark interest rate like LIBOR.

A "Plain Vanilla Swap" Is Best Described as A