Counterparties AA and BB face the following borrowing costs in the marketplace: Fixed Floating 5.60% 3.80% BB 6.60% 4.05% AA desires a floating rate loan while BB desires a fixed rate loan. A dealer stands ready to pay 5.90% fixed rate against receiving a floating rate of 3.85% or receive a fixed rate of 6.30% against paying a floating rate of 4%. Assume that each party exploits its relative advantage and swaps with the other as proposed by the dealer. The precise benefit for all parties from swapping is: a. 100 basis points b.25 basis points c.75 basis points d. 85 basis points e. None of the above