Question: 1. Given the following Problem Table Two. a. Does either company have an absolute advantage? Explain in Detail. b. Does either company have a relative

 1. Given the following Problem Table Two. a. Does either company

1. Given the following Problem Table Two. a. Does either company have an absolute advantage? Explain in Detail. b. Does either company have a relative comparative advantage. Explain in Detail c. Design a swap with diagrams proved both parties can profit from. Prove both parties can profit from swapping. d. Prove both parties can profit from swapping. Problem One Table Fixed 6% 7% Company A Company B Floating Libor Libor + .5% 2. Given the following Problem Table Two. e. Does either company have an absolute advantage? Explain in Detail. f. Does either company have a relative comparative advantage. Explain in Detail g. Design a swap with diagrams proved both parties can profit from. Prove both parties can profit from swapping. h. Prove both parties can profit from swapping. Problem Two Table Fixed 8% 5% Company X Company Y Floating T-Bill + 1% T-Bill + 3%

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