23-104 What is the foreign exchange risk that the FI is facing,and what type of currency option should be purchased to hedge this risk?
A) The FI should use put options to hedge the depreciation of the dollar.
B) The FI should use call options to hedge the depreciation of the pound sterling.
C) The FI should use put options to hedge the depreciation of the pound sterling.
D) The FI should use call options to hedge the depreciation of the dollar.
E) The FI should use put options to hedge the appreciation of the pound sterling.
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