Suppose Bank A is willing to allow you to enter into either side of a 3-year swap agreement

where LIBOR is exchanged for a fixed 8% interest. At the same time, Bank B is willing to lend

you money for 3-years and charge you LIBOR+.5% each year in interest. Alternatively, Bank B

is willing to allow you to deposit your money in the bank and earn an annual interest payment

each year of LIBOR-.5%. Finally, Bank C is willing to lend you money (let you deposit your

money) and pay (earn) a fixed 7% interest for the next 3-years. Is there an arbitrage opportunity

here? What is it