question archive Swap Comparative Advantage for Currency Swaps (10%) XXX wants to borrow USD YYY & Co wants to borrow EURO EURO USD XXX YYY 3
Subject:FinancePrice:2.86 Bought11
Swap Comparative Advantage for Currency Swaps (10%) XXX wants to borrow USD YYY & Co wants to borrow EURO EURO USD XXX YYY 3.25% 4.75% 6,75% 5,50% Design a swap that will net a bank, acting as intermediary 0,1% (10 basis points) per annum. Make the swap equally attractive to the two companies and ensure that all foreign exchange rate is assumed by the bank.
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