A US company may borrow USD funds at Libor plus 1%.In the EUR market,it can raise fixed-rate financing at 3%.It may also access a currency swap that is quoted as: Fixed EUR 3.0-3.2% vs Floating USD Libor.The cheapest rate at which the company can borrow floating dollar funds is:
A) Libor
B) Libor
C) Libor + 0.2%
D) Libor + 1%
Correct Answer:
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