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Question 5 Not yet answered Hybrid Air Vehicles Limited is a British manufacturer of hybrid airships. These aircraft use both aerodynamics and lighter-than-air technology to
Question 5 Not yet answered Hybrid Air Vehicles Limited is a British manufacturer of hybrid airships. These aircraft use both aerodynamics and lighter-than-air technology to generate lift, potentially allowing the vehicle to stay aloft for several weeks. The company sells its products to U.S. airlines and buys parts from U.S. companies. Suppose it has accounts receivable of $890 million and accounts payable of $350 million. It also has borrowed $400 million. The current spot rate is $1.75/. Which of the following statement is NOT TRUE regarding Hybrid Air Vehicles' dollar transaction exposure? Marked out of 3.00 Flag question Select one: a. None of the statements. All statements are true. O b. If the pound appreciates to $1.95/, the company will gain 8.2 million on its dollar transaction exposure. c. Hybrid Air Vehicles' pound transaction exposure is 80 million. d. Hybrid Air Vehicles' dollar transaction exposure is $140 million. O e. As the company's cash inflows and outflows are in foreign currencies, the company is exposed to risks from potential exchange rate changes between now and when these transaction settle
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