Which of the following statements is true?
A)An open position is a hedged position in a particular currency.
B)An open position is an unhedged position in a particular currency.
C)An open position is an unhedged position in an open market.
D)An open position is a hedged position in an open market.

Question

Quizplus · Accepted Answer

An open position refers to a position in a particular currency that has not been offset or hedged by an opposite position in the same currency. It means that the investor or trader has not taken any measures to protect themselves against adverse movements in the currency's value. Therefore, an open position is an unhedged position in a particular currency.

Which of the Following Statements Is True