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.
-What will be the annual GROSS interest payment of firm A to the swap bank? (where "GROSS" means that it does not take into account the payment made by the swap bank to firm A on the loan that firm A made to the swap bank)

A) £66,000
B) £76,000
C) $72,000
D) $216,000