Operating Exposure Can Be Defined as

question 67

Multiple Choice

Operating exposure can be defined as

• A)the link between the future home currency values of the firm's assets and liabilities and exchange rate fluctuations.
• B)the extent to which the firm's operating cash flows would be affected by random changes in exchange rates.
• C)the sensitivity of realized domestic currency values of the firm's contractual cash flows denominated in foreign currencies to unexpected exchange rate changes.
• D)the potential that the firm's consolidated financial statement can be affected by changes in exchange rates.

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Definitions:

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