Exposure to exchange rate risk

Reference no: EM13133902

A U.S. firm has a Canadian subsidiary that remits some of its earnings to the parent on an annual basis. The firm has no other foreign business. The firm could best reduce its exposure to exchange rate risk by issuing bonds denominated in:

a. U.S. dollars.

b. Canadian dollars.

c. multiple currencies.

d. euros.

Reference no: EM13133902

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