Consider Two Firms with One-Year Probabilities of Default Of $$p _ { 1 } = 0.10$$

Consider two firms with one-year probabilities of default of $$p _ { 1 } = 0.10$$ and $$p _ { 2 } = 0.05$$ ,respectively.The correlation of default of these two firms is $$\rho = 0.30$$ .What is the probability that both firms default in one year?

A) 1.0%
B) 1.5%
C) 2.0$
D) 2.5%