An Australian bank issues a one-year Australian Certificate of Deposit at 5.5 percent annual interest to finance a USD 3.5 million dollar investment in ten-year, fixed rate US Government bonds selling at par and paying 8 percent annually. You expect to liquidate your position in one year. Currently, spot exchange rates are 1.45 Australian Dollars per US dollar. Your position is exposed to:

A.interest rate risk, foreign exchange risk and credit risk.

B.credit risk only.

C.foreign exchange risk only.

D.interest rate risk only.

E.interest rate and foreign exchange risk and liquidity risk.