QUESTION 13 If company A agrees to pay company B cash flows equal to interest at a predetermined fixed rate on a notional principal for a predetermined number of years. (periods) and In return, company A receives interest at a floating rate on the same notional principal for the same period of time from company B O a. Both companies have entered in a currency swap O b. Both companies have entered in an interest rate swap O c. None of the options O d. Company A has an advantage over company B because it has a greater comparative advantage in the floating-rate lending market QUESTION 14 The price of a call option O a. Increases as the strike price decreases O b. Decreases as the strike price increases O c. None of the options O d. Increases as the strike price increases QUESTION 15 Interest rate variations for currency swaps include O a. floating rate to floating rate O b. fixed rate to fixed rate O c. All of the options O d. fixed rate to floating rate