Q657
For a foreign exchange of specific currency, non-hedged position is classified as
A.
open position
AnswerB.
close position
C.
currency long position
D.
currency short position
Answer: Option A
Solution
Answer: Option A
Solution:
For a foreign exchange of specific currency, non-hedged position is classified as open position. A naked position is a securities position, long or short, that is not hedged from market risk. Both the potential gain and the potential risk are greater when a position is naked instead of covered or hedged in some way.