Explain whether a U.S.firm would experience a gain or a loss related to its unhedged accounts receivable or payable in each of the following cases:

a. A U.S. firm has accounts receivable in British pounds, and the pound strengthens relative to the U.S. dollar.

b. A U.S. firm has accounts payable in Mexican pesos, and the peso weakens relative to the U.S. dollar.

c. A U.S.firm has accounts receivable in French francs,and the franc weakens relative to the U.S. dollar.

d. A U.S. firm has accounts payable in Canadian dollars, and the Canadian dollar strengthens relative to the U.S. dollar. LPO8