If Foreign Currency Exchange Rates Are Highly Positively Correlated, How

Multiple Choice

If foreign currency exchange rates are highly positively correlated, how can a FI reduce its exchange rate risk exposure?

A) By taking net long positions in all currencies.
B) By taking net short positions in all currencies.
C) By taking opposing net short and net long positions in different currencies.
D) By maximizing net FX exposure in each currency, independently.
E) By minimizing net FX exposure in each currency, independently.