Question: 6. Identify the one true statement about the expected exposure of assets to a change in the GBP/EUR exchange rate: (a) Shares in a French

6. Identify the one true statement about the expected exposure of assets to a change in the GBP/EUR exchange rate:

(a) Shares in a French importer from Britain have positive exposure to a change in the GBP/EUR

(b) French importer can always successfully hedge exposure to the GBP/EUR by matching future cash inflows and cash outflows

(c) Contractual exposure of a British importer arises from a signed contract with a French exporter which ensures a known cash inflow or outflow in GBP at some specified future time

(d) British importer from France typically have much larger EUR inflows than outflows

(e) None of the above

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