Suppose a U.S.-based MNC maintains a vacation home for employees in the British countryside and the local price of this property always moves up (down) by the same percentage as the pound depreciates (appreciates) relative to the dollar. As a result. Whenever the pound depreciates against the dollar, the local currency price of this property does not change The firm is not exposed to currency risk even if the pound-dollar exchange rate fluctuates randomly. The firm faces extreme currency risk none of the above *