| In a plain vanilla interest rate swap: 
 
 
| 
| A) | one party pays a floating rate and the other pays a fixed rate, both based on the notional amount. |  |  
| 
| B) | payments equal to the notional principal amount are exchanged at the initiation of the swap. |  |  
| 
| C) | each party pays a fixed rate of interest on a notional amount. |  |  
 
 
A plain vanilla swap is a fixed-for-floating swap. |