Currency Exposure Can Be Difficult to Estimate Because a Firm

question 17

Multiple Choice

Currency exposure can be difficult to estimate because a firm is likely to be involved in multiple transactions in a currency at different times.This complication can be made simpler by:

• A)eliminating the transactions at the extremes and focusing on the average transactions.
• B)considering only the transaction that occur within a very short period of time.
• C)considering only representative transactions.
• D)netting the transactions so that the focus can be on the net effect of the transactions.

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