Consider the situation of firm A and firm B. The current exchange rate is $1.50/. Firm A is a U.S. MNC and wants to borrow 40 million for 2 years. Firm B is a French MNC and wants to borrow $60 million for 2 years. Their borrowing opportunities are as shown; both firms have AAA credit ratings.

	$
A	$	7	%			6	%
B	$	8	%			5	%

Act as a swap bank and quote bid and ask prices to A and B that are attractive to A and B and promise to make at least 20bp for your firm.

USD			Euro
Bid	Ask		Bid	Ask

Please show steps