A is a U.S.-based MNC with AAA credit; B is an Italian firm with AAA credit. Firm A wants to borrow 1,000,000 for five year and B wants to borrow $2,000,000 for five years. The spot exchange rate is $2.00 = 1.00, a swap bank makes the following quotes for 5-year swaps for AAA-rated firms against USD LIBOR. USD Euro Bid Ask Bid Ask 8% 8.1% 6% 6.1% The firms' external borrowing opportunities are borrowing $ borrowing A 7.0% $ 8.0% B 6.0% $ 9.0% Is there a mutually beneficial swap? Group of answer choicesYes, Firm A swaps with the swap bank, $ at bid and at ask. Firm B swaps with the swap bank, $ at ask and at bid. Firms A and B would each save 90bp and the swap bank would earn 20bp. There is no mutually beneficial swap at these prices. None of the options are correct. Yes, Firm A swaps with the swap bank, $ at ask and at bid. Firm B swaps with the swap bank, $ at bid and at ask. Firms A and B would each save 90bp and the swap bank would earn 20bp.