Question: 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

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

(d) Libor + 1%

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