5.14 The Comparative Advantage Argument(Table 5.4, page 129) Company A wants to borrow floating Company b wants to borrow fixed Fixed Floating Companya 10.00% 6-month LIBOR+0.30% Company b 11.20% 6-month LIBOR+ 1.00% Options, Futures, and Other Derivatives, 4th edition@ 2000 by John C. Hull Tang Yincai, Shanghai Normal UniversityOptions, Futures, and Other Derivatives, 4th edition © 2000 by John C. Hull Tang Yincai, Shanghai Normal University 5.14 The Comparative Advantage Argument (Table 5.4, page 129) • Company A wants to borrow floating • Company B wants to borrow fixed Fixed Floating Company A 10.00% 6-month LIBOR + 0.30% Company B 11.20% 6-month LIBOR + 1.00%