24 pts Question 18 Your firm needs to raise some cash for three months. It will pay all interest owed at the time of maturity. There are three financing options available. Option 1: A $500,000 bank loan with a 3% APR and a 1% origination fee deducted from the principal Option 2: A $500,000 bank loan with a 6% APR and a 15% compensating balance to be kept in an account with a 1.5% APR Option 3: Commercial papers with $500,000 maturity value to be sold at $465,000 What is the EAR (with quarterly compounding) of (A) (8 pts) Option 1? (B) (8 pts) Option 2? (C) (8 pts) Option 3