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Part 3) Adidas AG, a German multinational, wishes to borrow U.S. dollars at a fixed rate of interest. Nike Inc., a U.S. multinational, wishes to

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Part 3) Adidas AG, a German multinational, wishes to borrow U.S. dollars at a fixed rate of interest. Nike Inc., a U.S. multinational, wishes to borrow euros at a fixed rate of interest. They have been quoted the following rates per annum (adjusted for differential tax effects): Deutsche Bank will act as an intermediary; it requires 8 basis points per annum to facilitate the swap. Design a swap that will produce a gain of 16 basis points per annum for each of the two companies. Adidas Nike Euros 5.2% 6% US Dollars 9.6% 10.0%

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