A swap dealer enters into a 10-year interest rate swap with firm X and another with firm Y. With firm X, the dealer receives a fixed rate of 5.50% and pays a floating rate of LIBOR + 0.88%. With firm Y, the dealer receives a floating rate of LIBOR + 0.80% and pays a fixed rate of 5.30%. What profit or loss has the dealer locked in on the trades (denoted in percentage points)? Ignore credit risk.

Loss of 0.12%

Profit of 0.12%

Loss of 0.08%

Profit of 0.20%