For a foreign exchange of specific currency, non-hedged position is classified as

A. open position

B. close position

C. currency long position

D. currency short position

Answer: Option A

Solution(By Examveda Team)

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.