Two investment banks execute a swap agreement for $$5,000,000$ in which Investment Bank A agrees to remit payments to Investment Bank B based on the EAFE, an index of European, Australasian, and Far Eastern stocks for four time periods. Investment Bank B agrees to remit payments based on the return on the S&P $500$ index to Investment Bank A for the same four time periods. What are the net cash flows between the two parties for the first time period if the S&P $500$ returns $5\%$ and the EAFE returns $8\%?$

a$.$

Both banks will come out even and there are no cash flows between them.

b$.$

Bank A will give Bank B $$150,000.$

c$.$

Bank B will give Bank A $$150,000.$

d$.$

Bank A will give Bank B $$650,000.$