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Q20 Single choice

A risk manager analyzes a long position with a USD 10 million value. To hedge the portfolio, it seeks to use options that decrease JPY 0.50 in value for every JPY 1 increase in the long position.
At first approximation, what is the overall exposure to USD depreciation?

A
His overall portfolio has the same exposure to USD as a portfolio that is long USD 5 million.
B
His overall portfolio has the same exposure to USD as a portfolio that is long USD 10 million.
C
His overall portfolio has the same exposure to USD as a portfolio that is short USD 5 million.
D
His overall portfolio has the same exposure to USD as a portfolio that is short USD 10 million.

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