Consider the dollar- and euro-based borrowing opportunities of companies A and B. Als a U.S. based MNC with AAA credit: B is an Italian firm with AAA credit. Firm Awants to borrow 1,000,000 for one Bwants to borrow $2,000,000 for one year. The spot exchange rate is $2.00 - 1.00 and th e-year forward rate is given by IRP as $2.0377/1. Is there a mutually beneficial swap? Euro borrowing USD borrowing Company A 696 $8% Company B 6% $8% O Yes, QSD - 4% 0 No, QSD = 0 O Yes, QSD - 2%