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1 given the information in the picture, answer the following questions and then upload the answer sheet: Company A wants to borrow 20,000,000 U.S.$, while

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1 given the information in the picture, answer the following questions and then upload the answer sheet: Company A wants to borrow 20,000,000 U.S.$, while B wants to borrow 10,000,000 U.K.. A. Given these quotes, describe the margin that could be captured in a currency SWAP. Discuss the economic reasons that this margin is often available to be shared with a currency SWAP. Design a currency SWAP that gives the bank 10 basis points and splits the remaining margin between Companies A and B. (Non-anonymous question 0)* (6 Points) Given the spot exchange rate is S2 S/, consider the following quotes for firms A and B: U.K. loan U.S. Sloan U.K. Company A 11.0% 8.0% U.S. Company B 10.5% 7.0%

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