14-64 How Would You Characterize the FI's Risk Exposure to Fluctuations

question 79

Multiple Choice

14-64 How would you characterize the FI's risk exposure to fluctuations in the Swiss franc/dollar exchange rate?

• A)The FI is net short in the franc and therefore faces the risk that the franc will rise in value against the U.S.dollar.
• B)The FI is net short in the franc and therefore faces the risk that the franc will fall in value against the U.S.dollar.
• C)The FI is net long in the franc and therefore faces the risk that the franc will fall in value against the U.S.dollar.
• D)The FI is net long in the franc and therefore faces the risk that the franc will rise in value against the U.S.dollar.
• E)The FI has a balanced position in the Swiss franc.

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Definitions:

Symphysis

A type of cartilaginous joint where the bones are joined by fibrocartilage, providing slight movement and acting as a shock absorber.

Superior Surface

The uppermost part or face of an object, often referring to anatomy where it denotes the topmost aspect of a structure.

Rectus Abdominis

A long muscle of the anterior abdominal wall that helps flex the spine and maintain posture.

Transverses Abdominis

A muscle layer of the anterior and lateral abdominal walls which is deep to (beneath) the internal oblique muscle.