7*. Company A, a French manufacturer, wishes to borrow U.S. dollars at a fixed rate of interest for one year. Company B, a U.S. multinational, whishes to borrow euro at a fixed rate of interest for one year. They have been a. Design a swap that: (i)-will net a bank, acting as intermediary, 15% of QSD (quality spread differential) per annum in curo and 15% of the QDS in the U.S. dollars; and (ii)- will generate a gain of 35% of QSD per annum for A and 35% of QSD for company B. QSD: b. Suppose that the notional value of swap is $145 millions and 100 millions at the initial spot exchange rate of S0($1.45). Calculate gains (losses) for the intermediary bank if the exchange rate will be S1($1.90) one year from now. Explicitly show Bank's gains or losses in each currency after one year