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A European firm can borrow at 8% in the U.S. and at 7% in Europe. A U.S. firm can borrow at 7% in the U.S. and at 8% in Europe. If the U.S. firm needs euros and the European firm needs dollars, then a currency swap could save each counterparty: A. a minimum of 2% a loan on the foreign currency. B. up to 1% (maximum) in a loan on the foreign currency. C. a minimum of 1% in a loan on the foreign currency. |