Consider a U.S. commercial bank that takes in one-year certificates of deposit (CDs) in its Hong Kong branch, denominated in Hong Kong dollars, to fund three-year, fixed-rate loans the bank is making in the U.S. denominated in U.S. dollars. Why would this bank wish to enter into a currency swap? The bank faces the risk that the Hong Kong dollar:
A) decreases in value against the U.S. dollar and the risk that interest rates increase in Hong Kong. B) decreases in value against the U.S. dollar and the risk that interest rates decrease in Hong Kong. C) increases in value against the U.S. dollar and the risk that interest rates increase in Hong Kong.