Question
A Malaysian firm is due to receive one million Australian dollar (A$) from an Australian firm in three months. Which of the following is the
A Malaysian firm is due to receive one million Australian dollar (A$) from an Australian firm in three months. Which of the following is the best description of the foreign exchange risk involved in this transaction?
a- A malaysian firm is expose to the risk that malaysian ringgit can appreciate against the Australia dollar in three months. in other words malaysia firm is expose to the that the australian dollar can depreciate against the malaysia ringgit in three months.
b- the malaysian firm is exposed to the risk that the malaysian ringgit can depreciate against the australian dollar in three months
c- the australian is exposed to the risk that the australian dollar can depreciate against malaysian ringgit in three months
d- the australian firm is exposed to the risk that the australian dollar can appreciate against malaysian ringgit in three months
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started