The ABC Banking Corp provides loans to corporations of every size. They are review a loan application for the ACME Products Corporation. ACME wants to borrow $10 million. The risk management department informs the line manager that they expect the probability of default to be 1.25% and the loss given default to be 37.5%. What is the expected credit loss on the loan? A) $3,750,000

B) $46,875

C) $125,000

D) Not Enough Information