For a foreign exchange of specific currency, the non-hedged position is classified as _____________?
Correct answer: A. open position
- A. open position
- B. close position
- C. currency long position
- D. currency short position
Explanation
An unhedged foreign-exchange position is called an open position because it remains exposed to changes in exchange rates. Long and short positions describe the direction of exposure, not the general absence of hedging.
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