Question: ABC is based in the U.S. It had just signed a contract to buy goods from a French supplier. It needs to pay 500,000 to

ABC is based in the U.S. It had just signed a contract to buy goods from a French supplier. It needs to pay €500,000 to the French supplier in 3 months' time. What kind of foreign exchange exposure does Alpha face?

(A) Transaction exposure

(B) Economic exposure

(D) Strategic exposure

(E) Competitive exposure

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