The U.S. dollar has been steadily strengthening with respect to the Canadian dollar. A U.S. parent has a subsidiary in Canada. Which statement is most likely to be true concerning the subsidiary's leverage, calculated as ending total liabilities divided by ending total assets? (Use T to represent translated leverage, R to represent remeasured leverage, and L to represent leverage calculated using local currency balances.) Select one: A. R > T = L B. R > T > L C. L = T > R D. R > L > T

A U.S. parent owns a subsidiary in France, the subsidiary's accounts are maintained in euros, and its functional currency is the U.S. dollar. During the year, the euro has weakened against the U.S. dollar (U.S.$/ rate has declined). Which one of the subsidiary's transactions below increases the amount of remeasurement losses reported when the subsidiary's accounts are translated to U.S. dollars? Select one: A. Inventory purchases B. Depreciation expense C. Sale of equity securities D. Sales revenue

A U.S. company holds put options in euros with a strike price of $1.25/. The spot price of euros declines to $1.23/. The company will: Select one: A. Gain on the put options B. Not exercise the options C. Lose on the put options D. Continue to hold the options after they expire