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3 M Co . is a US - Based MNC with net cash inflows of British pounds and net cash inflows of Swiss francs. The
M Co is a USBased MNC with net cash inflows of British pounds and net cash inflows of Swiss francs. The currencies are highly positively correlated. Antrax Co is a USbased MNC that has the same level of net cash flows in these currencies as M Co except that its British pounds represent net cash outflows. Which MNC is more exposed to exchange rate risk?
AM Co
B Antrax Co
C The two firms have similar exposure
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