Let us say a U.S. F| has bought Swiss Francs worth USD 8,000 and at the same time sold Swiss Francs worth USD 10,800. On the balance sheet, 10,200 USD worth of assets are in Swiss currency while 9,800 USD worth of liabilities are in Swiss Francs. How would you characterize the Fl's risk exposure to fluctuations in the Swiss franc/dollar exchange rate?

a. The FI has a balanced position in the Swiss franc.

b. The Fl is net short in the franc and therefore faces the risk that the franc will rise in value against the U.S. dollar.

c. The Fl is net short in the franc and therefore faces the risk that the franc will fall in value against the U.S. dollar.

d. The Fl 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 is net long in the franc and therefore faces the risk that the franc will fall in value against the U.S. dollar.