Operating exposure can be defined as
A) the link between the future home currency values of the firm's assets and liabilities and exchange rate fluctuations.
B) the extent to which the firm's operating cash flows would be affected by random changes in exchange rates.
C) the sensitivity of realized domestic currency values of the firm's contractual cash flows denominated in foreign currencies to unexpected exchange rate changes.
D) the potential that the firm's consolidated financial statement can be affected by changes in exchange rates.
Correct Answer:
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