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AAA Co. is a U.S. based MNC with net cash inflows of Singapore dollars and net cash inflows of Sunland francs. These two currencies are
AAA Co. is a U.S. based MNC with net cash inflows of Singapore dollars and net cash inflows of Sunland francs. These two currencies are highly positively correlated in their movements against the dollar. BBB Co. is a U.S. based MNC that has the same exposure as AAA Co. in these currencies, except that its Sunland francs represent cash outflows. Which firm has a high exposure to exchange rate risk? OA BBB Co. O B. More information is needed to decide OC. the firms have about the same level of exposure. OD. AAA Co. O E neither firm has any exposure
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