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 $- 0.2 \%$
B) Libor
C) Libor + 0.2%
D) Libor + 1%

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The Answer of 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 $- 0.2 \%$
B) Libor
C) Libor + 0.2%
D) Libor + 1%

A US Company May Borrow USD Funds at Libor Plus −0.2%- 0.2 \%−0.2%

A US Company May Borrow USD Funds at Libor Plus $- 0.2 \%$