Question: A hedge fund is currently engaged in a plain vanilla euro swap in which it pays euros at the euro floating rate of Euribor and

A hedge fund is currently engaged in a plain vanilla euro swap in which it pays euros at the euro floating rate of Euribor and receives euros fixed. It would like to convert this position into one in which it pays the return on the S&P 500 and receives euros at a fixed rate. Show how it can use currency and equity swaps to maintain its position in the plain vanilla euro swap and convert its overall position to the one desired?

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