Transaction exposure reflects:

• A. the exposure of a firms ongoing international transactions to exchange rate fluctuations.
• B. the exposure of a firms financial statements to exchange rate fluctuations.
• C. the exposure of a firms value to exchange rate fluctuations
• .If a U.S. firms cost of goods sold exposure is much greater than its sales exposure in Switzerland, there is a _______ overall impact of the Swiss francs depreciation against the dollar on _______.
• A. positive; interest expenses
• B. positive; gross profit
• C. negative; gross profit
• D. negative; interest expenses