Identify the one true statement about the expected exposure

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Problem 1: Identify the one true statement about the expected exposure of assets to a change in the GBP/EUR exchange rate:

(a) Shares in a French importer from Britain have positive exposure to a change in the GBP/EUR

(b) French importer can always successfully hedge exposure to the GBP/EUR by matching future cash inflows and cash outflows

(c) Contractual exposure of a British importer arises from a signed contract with a French exporter which ensures a known cash inflow or outflow in GBP at some specified future time

(d) British importer from France typically have much larger EUR inflows than outflows

(e) None of the above

Reference no: EM132915625

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