Foreign Exchange (FX) risk exposure essentially relates to open position taken as a (an) _______ by the FI for _________ purposes. A FI usually creates an open position by taking a (an) __________ position in a foreign currency in its FX trading with other FIs.

a.

principal; hedging; unhedged

b.

principal; speculative; unhedged

c.

agent; hedging; hedged

d.

agent; speculative; hedged

e.

agent; speculative; unhedged