The dollar loss/gain in a particular currency i can be calculated as:
A) Net exposure in foreign currency i multiplied by the volatility to the ($/foreign currency i) exchange rate.
B) Net exposure in foreign currency i measured in Australian dollars divided by the volatility to the ($/foreign currency i) exchange rate.
C) Net exposure in foreign currency i divided by the volatility to the ($/foreign currency i) exchange rate.
D) Net exposure in foreign currency i measured in Australian dollars multiplied by the volatility to the ($/foreign currency i) exchange rate.
Correct Answer:
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