A Negative Net Exposure Position in FX Implies That the FI

Multiple Choice

A negative net exposure position in FX implies that the FI is

A) net long in a currency and exposed to depreciation of the foreign currency.
B) net short in a currency and exposed to depreciation of the foreign currency.
C) net long in a currency and exposed to appreciation of the foreign currency.
D) net short in a currency and exposed to appreciation of the foreign currency.
E) neither long nor short in a currency.