Which of the following illustrates non-contractual exchange-rate risk?
A) A Canadian importer will owe £50,000 and the pound is expected to appreciate.
B) A French airplane manufacturer has suppliers in Canada and the exchange rate has been unstable.
C) A Canadian distributor of Japanese electronic goods expects the Dollar to depreciate.
D) A Canadian subsidiary of a German manufacturer transfers DM100,000 to the parent annually.
Correct Answer:
Verified
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A)A
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