A Japanese Company Exports Merchandise to a U

A Japanese company exports merchandise to a U.S. importer for ¥1,000,000 when the exchange rate is ¥107 per dollar. Payment is not due until the end of the month. At the end of the month,the exchange rate has moved to ¥105 per dollar,and the U.S. importer pays the Japanese exporter for the merchandise. From the standpoint of the U.S. importer,________.

A) there is no transaction exposure since they will sell the merchandise in the United States for dollars
B) the merchandise will be carried on the books at $93,468 (rounded)
C) the Japanese exporter will be paid $9,524
D) the exposure is considered to be a translation exposure, not a transaction exposure