Lachlin Bank has a liability where the annual nominal interest rate is 8% convertible semiannually, and DCB Bank has a linbility where the annual nominal interest rate is at prime +12% convertible semiannually These two banks enter a swap whereby Lachlin Bank pays DCB Bank at a rate of prime in roturn for a rate of 7,5% per year. The situation regarding the risk exposure of the parties if there is an increase in the prime is that Postihle Answers Lachlin Bank would be exposed B Both parties would be exposed cNeither party would be exposed because the risk is hedged DDCB Bank would be exposed Not enough information is provided to determine risk exposure