What Are the Expected End-Of-Year Profits or Losses If the Bank

What are the expected end-of-year profits or losses if the bank hedges its interest rate risk exposure using the swap?

A) The bank expects to lose $0.45 million in the first year and earn $0.58 million in the second year by buying the swap to hedge against interest rate increases.
B) The bank expects to lose $0.45 million in the first year and earn $0.58 million in the second year by selling the swap to hedge against interest rate decreases.
C) The bank expects to earn $0.45 million in the first year, lose $0.58 million in the second year by buying the swap to hedge against interest rate increases.
D) The bank expects to earn $0.45 million in the first year and lose $0.58 million in the second year by selling the swap to hedge against interest rate decreases.
E) The bank will not do the swap because it has no interest rate risk exposure.
Reason: First year cash flow: Fixed-rate payer pays $0.45 million (4.95 - 4.5) to floating rate payer. Second year cash flow: Floating-rate payer pays $0.58 million (5.53 - 4.95) to fixed rate payer.