C. +35c d. 100 QUESTION 3 1 point Consider fixed-for-fixed currency swap. Firm A is a U.S.-based multinational. Firm Bis a UK-based multinational. Firm A wants to finance a 2 million expansion in Great Britain. Firm B wants to finance a 54 million expansion in the US. The spot exchange rate is 1.00 - $2.00. Firm A can borrow dollars at $10% and pounds sterling at 12%, Firm B can borrow dollars at 9% and pounds sterling at 11%. Which of the following swaps is beneficial both party and meets their financing needs? In this swap, neither party should face exchange rate risk. a Firm A should borrow $4 million in dollars, pay 11% in pounds to Firm B, who in turn borrows 2 million pounds and pays 10% in dollars to A b. There is no such a swap that has neither party facing exchange rate risk Firm A should borrow $2 million in dollars, pay 11% in pounds to Firm B, who in turn borrows 4 million pounds and pays 8% in dollars to A d. -Firm A should borrow $4 million in dollars, pay 11% in pounds to Firm B, who in turn borrows 2 million pounds and pays 8% in dollars to A QUESTION 4 Company A and Company B both want to borrow 1,000,000 for three years. A wants borrow floating and wants to borrow fixed. A and B agree to equally split the cost savings. What are the borrowing costs after swap? Save All Answers Close Wind Click Save and Submit to save and submit. Click Save All Answers to save all answers