Bank a Is Able to Raise Funds at Libor $y$ Bps What Range of Basis Points

Bank A is able to raise funds at Libor. Bank B does so at Libor + 30 bps. Bank A buys a reference credit risky asset returning Libor + 70 bps, and then, A and B contract with each other on a credit swap (CDS) where A buys protection on the reference asset from B for $y$ bps. What range of basis points $y$ would be acceptable to both parties in the contract?

A) $y < 70$
B) $y > 40$
C) $40 < y < 70$
D) $10 < y < 40$

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