A financial manager of FI located in Australia invests twenty million euro in two-year maturity loans. In addition to that the manager partially funds these loans with ten million euro one-year deposits. The FI is exposed to the following risk:

1)	An appreciation of the euro against the Australian dollar plus credit risk plus refinancing risk, such as increasing interest rates in the Eurozone.

2)	A depreciation of the euro against the Australian dollar plus credit risk plus refinancing risk, such as increasing interest rates in the Eurozone.

3)	A depreciation of the euro against the Australian dollar plus credit risk plus reinvestment risk, such as decreasing interest rates in the Eurozone.

4)	A depreciation of the euro against the Australian dollar reinvestment risk, such as increasing interest rates in the Eurozone.