Question

A positive net exposure position in FX implies that the FI is

A. net long in a currency and exposed to depreciation of the foreign currency.

B. net short in a currency and exposed to depreciation of the foreign currency.

C. net long in a currency and exposed to appreciation of the foreign currency.

D. net short in a currency and exposed to appreciation of the foreign currency.

E. neither long nor short in a currency.

Answer

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