Solved

Suppose a U

Question 7

Multiple Choice

Suppose a U.S.-based MNC maintains a vacation home for employees in the British countryside and the local price of this property is always moving together with the pound price of the U.S.dollar.As a result,


A) whenever the pound depreciates against the dollar,the local currency price of this property goes up by the same proportion.
B) the firm is not exposed to currency risk even if the pound-dollar exchange rate fluctuates randomly.
C) whenever the pound depreciates against the dollar,the local currency price of this property goes up by the same proportion.Additionally,the firm is not exposed to currency risk even if the pound-dollar exchange rate fluctuates randomly.
D) none of the options

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents