Question

    In the revised instructions on foreign exchange risk

    hedging, what is the maximum exposure a user is allowed to take across all recognized stock exchanges without having to establish an underlying exposure?
    A USD 50 million Correct Answer Incorrect Answer
    B USD 75 million Correct Answer Incorrect Answer
    C USD 100 million Correct Answer Incorrect Answer
    D USD 150 million Correct Answer Incorrect Answer
    E USD 200 million Correct Answer Incorrect Answer

    Solution

    The circular "Risk Management and Inter-Bank Dealings – Hedging of Foreign Exchange Risk" allows users to take positions up to USD 100 million across all exchanges without needing to establish an underlying exposure.

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