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How does the Conversion Optimizer use an advertisers cost-per-acquisition (CPA) bid to determine the optimal equivalent cost-per-click (CPC...

How does the Conversion Optimizer use an advertisers cost-per-acquisition (CPA) bid to determine the optimal equivalent cost-per-click (CPC) bid for each auction?

How does the Conversion Optimizer use an advertisers cost-per-acquisition (CPA) bid to determine the optimal equivalent cost-per-click (CPC) bid for each auction? 

A) The CPA bid is multiplied by the predicted conversion rate 
B) The CPA bid is the highest the system will allow the CPC bid to reach
C) The actual CPC bid is based on current max CPC settings
D) The CPC bid is one-tenth of the CPA bid by default