14.31Suppose the euro is expected to appreciate by 4% annually against the dollar. If a company can borrow dollars at 9.3%, what is the highest interest rate it should be willing to pay to borrow euro, assuming it is trying to minimize its expected financing cost?

a)5.1%

b)4.3%

c)7.2%

d)8.9%

can you explain how to you get the correct answer