Consider a U$.$S$.-$based MNC with manufacturing activities in Japan. The result of a change in the $-$$ exchange rate on the assets and liabilities of the consolidated balance sheet is

Exposed assets

$700,000,000$

Exposed liabilities

$500,000,000$

Ignoring transaction exposure in the yen, the translation exposure will indicate a possible need for a hedge of

$$ none of the options

$200,000,000$ less assets denominated in yen.

$4200,000,000$ more liabilities denominated in yen.

$$ $$200,000,000$ more liabilities denominated in yen or $200,000,000$ less assets denominated in yen.