The Canadian Firm Wants to Borrow in Euros and the }

Multiple Choice

$\begin{array}{lcc} &\text { Canadian interest rate }&\text {french interest rate }\\& \text { on CS loans } & \text { on euro loans } \\\text { Canadian firm } & 5 \% & 5.5 \% \mathrm{a} \\\text { Freneh firm } & 6 \% & 5.5 \%\end{array}$
The Canadian firm wants to borrow in euros and the French firm wants to borrow in Canadian dollars.
-Find QSD

A) 1%
B) 1.2%
C) 2.2%
D) 3.2%