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The following are the net currency positions of a U.S. FI (stated in U.S. dollars). How would you characterize the Fl's risk exposure to fluctuations

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The following are the net currency positions of a U.S. FI (stated in U.S. dollars). How would you characterize the Fl's risk exposure to fluctuations in the Swiss franc relative to U.S. dollar exchange rate? The FI is net short in the Swiss frane and therefore faces the risk that the Swiss franc will rise in value against the U.S. dollar. The FI is net long in the Swiss frane and therefore faces the risk that the Swiss franc will fall in value against the U.S. dollar. The FI is net long in the Swiss franc and therefore faces the risk that the Swiss franc will rise in value against the U.S. dollar. The FI is net short in the Swiss frane and therefore faces the risk that the Swiss frane will fall in value against the U.S. dollar. The FI has a balanced position in the Swiss frane

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