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      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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