7) Which three statements regarding the different types of foreign exchange exposure are true?

A Translation risk affects every company, even if it has no international operations.

B Economic risks includes not only the price effect on existing transaction, but also the quantity effect on future goods sold.

C Transaction risk is asymmetric and non-linear due to its long term nature.

D Operational flexibility is a very efficient way to address economic exchange rate risks.

E Transaction risk can be mitigated by marketing and by creating high switching costs for customers.

F Translation risk does not affect a companys cash-flows. It causes book losses, unless the assets in question will be sold in the near future.

NOTE: 3 are correct