A plain vanilla currency swap does NOT involve which of the following?

Question

Quizplus · Accepted Answer

A plain vanilla currency swap involves an exchange of equivalent amounts in two different currencies on the start date, cash flows in different currencies at intermediate dates, exchange of interest payments on these two currency loans on intermediate dates, and repayment of the principal amounts on the ending date along with the final period's interest payments. There is no net payment by one of the counterparties in a plain vanilla currency swap, so choice B is not involved.

A Plain Vanilla Currency Swap Does NOT Involve Which of the Following