pts) A subsidiary in Israel requires the Israel shekel equivalent of $1 million at the current xchange (10 rate of 4 shekels/S, or 4 million shekels. To obtain 4 million shekels for the subsidiary est on its deposits. The in Israel, the parent can set up a swap with an Israeli bank. The bank requires a deposit $1 million and charges an annual interest of 10% on its loans, while it pay zero inter parent company can either lend at 15% per year or borrow in the US at 20% per year (3 pts) Wh a. at is the total cost of setting up a swap with an Israeli bank for the parent company? Include the opportunity cost in your calculations e shekel is expected to depreciate to 4.6 shekels/$ by the end of the year. parent company borrow $1 million in the US or set up the swap with the b. (4 pts) If th Should the Israeli bank? will be indifferent between the direct loan in a US bank and the swap? pts) A subsidiary in Israel requires the Israel shekel equivalent of $1 million at the current xchange (10 rate of 4 shekels/S, or 4 million shekels. To obtain 4 million shekels for the subsidiary est on its deposits. The in Israel, the parent can set up a swap with an Israeli bank. The bank requires a deposit $1 million and charges an annual interest of 10% on its loans, while it pay zero inter parent company can either lend at 15% per year or borrow in the US at 20% per year (3 pts) Wh a. at is the total cost of setting up a swap with an Israeli bank for the parent company? Include the opportunity cost in your calculations e shekel is expected to depreciate to 4.6 shekels/$ by the end of the year. parent company borrow $1 million in the US or set up the swap with the b. (4 pts) If th Should the Israeli bank? will be indifferent between the direct loan in a US bank and the swap