Suppose you are a US Firm who entered into a 10 year swap 5 years ago wherein you pay 2% annually on $100M USD and collect 3% on 130M CAD. At the time you entered the swap, the exchange rate was 1.30 CAD/USD.

Currently, the exchange rate is 1.40 CAD/USD and the 5 year USD for CAD swap rates are 0.2% (USD) and 2.2%(CAD) respectively.

Which of the following is false?

Select one:

a. You are glad the CAD fell in value.

b. You are unhappy USD interest rates fell

c. You are glad CAD interest rates fell

d. You want the Canadian dollar to go up in value