What is the nominal amount of money that company

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Right answer is b, please provide solution and explain everything in details

Two companies have access to the following deposit offers in the market.
Company A - 6% at a fixed rate and LIBOR - 0.1% at a floating rate; Company B

- 5.4% at a fixed rate and LIBOR - 0.3% at a floating rate. The nominal amount of the contract is EUR 10 million. What is the nominal amount of money that Company A can gain if it decides to enter into a swap with Company B (without an intermediary) and Company B gains 0.15% of the nominal value of the swap?

Also, at what interest rate must Company A place the deposit on the market (floating or fixed)?

25000 EUR and Company A places the deposit on the market at floating interest rate.
25000 EUR and Company A places the deposit on the market at fixed interest rate.

C) 40000 EUR and Company A places the deposit on the market at floating interest rate.

d) 40000 EUR and Company A places the deposit on the market at fixed interest rate.

Reference no: EM133557679

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