Suppose That the Current 90-Day London Interbank Offer Rate Is

Multiple Choice

Suppose that the current 90-day London interbank offer rate is 11% all rates are stated on an annualized basis.If next period's LIBOR is 10.5%,then a Eurodollar rate priced at LIBOR plus 1% will cost

A) 12% this period and 11.5% next period
B) 11% this period and 10.5% next period
C) 12% this period and 12% next period
D) 11% this period and 11% next period