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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

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 Floating Company X 8% T-Bill + 1% Company Y 5% T-Bill + 3%

Problem Two Table

Fixed

Floating

Company X

8%

T-Bill + 1%

Company Y

5%

T-Bill + 3%

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