Question 4 3.33 pts Change in the value of the firm resulting from unexpected changes in exchange rates altering the value of future operating cash flow is called accounting exposure transaction exposure economic exposure translation exposure Question 5 3.33 pts With hedge you should spend at least as much time working the hedge as working the underlying deal itself. an optimal payoff is guaranteed regardless of the market conditions. the cash flow volatility of the firm should decrease. you should try to make money on both sides of the transaction. Question 6 3.33 pts Hasbro currently has a sizeable position currency forwards that are long foreign currencies. Which could explain the rationale for this decision? They expect weak U.S. sales when the dollar is weak. They expect to have significant sales in foreign countries They have accounts payable in foreign currencies They are taking a speculative bet that the dollar will appreciate Question 4 3.33 pts Change in the value of the firm resulting from unexpected changes in exchange rates altering the value of future operating cash flow is called accounting exposure transaction exposure economic exposure translation exposure Question 5 3.33 pts With hedge you should spend at least as much time working the hedge as working the underlying deal itself. an optimal payoff is guaranteed regardless of the market conditions. the cash flow volatility of the firm should decrease. you should try to make money on both sides of the transaction. Question 6 3.33 pts Hasbro currently has a sizeable position currency forwards that are long foreign currencies. Which could explain the rationale for this decision? They expect weak U.S. sales when the dollar is weak. They expect to have significant sales in foreign countries They have accounts payable in foreign currencies They are taking a speculative bet that the dollar will appreciate