Operating Exposure

question 22

Multiple Choice

Operating exposure:

• A) measures the extent to which foreign exchange volatility may affect a firm's future ongoing revenues and costs.
• B) measures the effects of FX changes on the balance sheet of the firm.
• C) refers to the extent to which the value of the firm's cash flows may be affected by changes in the exchange rate.
• D) tries to measure the impact of unexpected exchange rate fluctuations on the net present value of the firm's future cash flows.

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