This question will be sent to your Instructor for grading. Come up with a swap (exchange of interest and principal) for parties A and B who have the following borrowing opportunities. 9 A B 5% 6% $LIBOR% $LIBOR + 2% 1 points The current exchange rate is $1.60 = 1.00. Company "A" is in Milan, Italy and wishes to borrow $1,000,000 at a floating rate for 5 years and company "B" is a U.S.firm that wants to borrow 625.000 for 5 years at a fixed rate of interest. You are a swap dealer. Quote A and B a swap that makes money for all parties and eliminates exchange rate risk for both A and B. eBook Print Short Answer Toolbar navigation References BI V S M iii This question will be sent to your Instructor for grading. Come up with a swap (exchange of interest and principal) for parties A and B who have the following borrowing opportunities. 9 A B 5% 6% $LIBOR% $LIBOR + 2% 1 points The current exchange rate is $1.60 = 1.00. Company "A" is in Milan, Italy and wishes to borrow $1,000,000 at a floating rate for 5 years and company "B" is a U.S.firm that wants to borrow 625.000 for 5 years at a fixed rate of interest. You are a swap dealer. Quote A and B a swap that makes money for all parties and eliminates exchange rate risk for both A and B. eBook Print Short Answer Toolbar navigation References BI V S M