Suppose your firm invests $100,000 in a project in Italy. At the time the exchange rate is $1.25 = 1.00. One year later the exchange rate is the same, but the Italian government has expropriated your firm's assets paying only 80,000 in compensation This is an example of: a. Exchange rate risk. b. Political risk. O c. Market imperfections None of the above, since $100,000 = 80,000 * $1.25/1.00 Od one of the