Which of the following is an example of transaction exposure? Question 8 options:

An increase in the dollar's value hurts a U.S. firm's domestic sales because foreign competitors are able to increase their sales to U.S. customers.

An increase in the pound's value increases the U.S. firm's cost of British pound payables. A decrease in the peso's value decreases a U.S. firm's dollar value of peso receivables.

The dollar value of sales is higher if the pound depreciates against the dollar.

The dollar value of sales is unaffected by the pound's exchange rate.