2. Company X a British company wishes to borrow U.S. dollars at a fixed rate of

2. Company X a British company wishes to borrow U.S. dollars at a fixed rate of interest. Company Y a U.S. company wishes to borrow British Pound at a fixed
rate of interest. They have been offered the following rates;Which one the following swaps will net a bank 10 basis points per annum and will provide equal gains per annum for each of the two companies?
Answer Let X pay 11.0% BP to outside pay 5.55% $ to bank and let Y pay 6.2% on $ to outside and pay 9.95% on BP to the bank. Let X pay 11.0% BP to outside pay 6.95% $ to bank and let Y pay 6.2% on $ to outside and pay 10.35% on BP to the
bank. Let X pay 11.0% BP to outside pay 7.55% $ to bank and let Y pay 6.2% on $ to outside and pay 10.95% on BP to the
bank. all of the above.