Exchange rate risk: a. arises from the fact that the spot exchange rate on afutu

Question

Exchange rate risk:
a. arises from the fact that the spot exchange rate on afuture date is a random variable b. applies only to certain types of internationalbusinesses c. has been phased out due to recent internationallegislation d. all of the above Exchange rate risk:
a. arises from the fact that the spot exchange rate on afuture date is a random variable b. applies only to certain types of internationalbusinesses c. has been phased out due to recent internationallegislation d. all of the above

Explanation / Answer

Answer is Option (a) arises from the fact that thespot exchange rate on a future date is a randomvariable.

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