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A US Company needs 10 million euros now while a German company needs $12 million now and they will repay each other in 1 year.

A US Company needs 10 million euros now while a German company needs $12 million now and they will repay each other in 1 year. Set up a currency swap for the 2 companies using the information below. Show the swap now and a year from now.

Spot $1.2 per Euro Euros .8333 per $1

1 year Forward $1.18 per Euro Euros .8475 per $1

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