Transaction exposure and economic exposure

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Reference no: EM131497062

XYZ corporation has a British supplier and an Argentinian buyer. Transactions with his UK supplier are denominated in UK pounds and transactions with his Argentinian buyer are denominated in Argentinian pesos. The UK supplier gives XYZ 30 days from the day the payable was created to pay for the supplies. Likewise, the Argentinian buyer has 30 days form the day the receivable was created to make payment to XYZ. These scenarios are examples of:

A. Transaction exposure

B. Economic exposure

C. Translation exposure

D. Hedging policy

Reference no: EM131497062

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