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A swap bank makes the following quotes for 1-year swaps and AAA-rated: Euro USD Bid Ask Bid Ask 1% 1.4% 5% 5.1% None of the

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A swap bank makes the following quotes for 1-year swaps and AAA-rated: Euro USD Bid Ask Bid Ask 1% 1.4% 5% 5.1% None of the alternatives The bank stands ready to pay 1% against paying LIBOR The bank stands ready to pay 5% against paying LIBOR The bank stand ready to pay 5% against receiving LIBOR The bank stands ready to pay 1.4% against receiving LIBOR

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