Come up with a swap (exchange of interest and principal) for parties A and B who have the following borrowing opportunities. 5% 6% $LIBOR% $LIBOR +X% B The current exchange rate is $1.60- 1.00. Company 'A" is in Milan, Italy and wishes to borrow $1,000,000 at a floating rate for 5 years and company "B" is a U.S. firm that wants to borrow 625,000 for 5 years at a fixed rate of interest. You are a swap dealer Quote A and B a swap that makes money for all parties and eliminates exchange rate risk for both A and B. Come up with a swap (exchange of interest and principal) for parties A and B who have the following borrowing opportunities. 5% 6% $LIBOR% $LIBOR +X% B The current exchange rate is $1.60- 1.00. Company 'A" is in Milan, Italy and wishes to borrow $1,000,000 at a floating rate for 5 years and company "B" is a U.S. firm that wants to borrow 625,000 for 5 years at a fixed rate of interest. You are a swap dealer Quote A and B a swap that makes money for all parties and eliminates exchange rate risk for both A and B