Which Strategy Below Would Take Advantage of the Following Comparative

question 60

Multiple Choice

Which strategy below would take advantage of the following comparative advantage?

• A)Company X should borrow fixed and Company Y should borrow floating, then they should swap their interest payments.
• B)Company X should borrow floating and Company Y should borrow fixed, then they should swap their interest payments.
• C)Company X should borrow fixed and Company Y should borrow floating, but there is no benefit to a entering a swap.
• D)Company X should borrow floating and Company Y should borrow fixed, but there is no benefit from entering a swap.
• E)There is no opportunity for comparative advantage here.

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