Question: DJacko Ca . is a J . S - hawd MNC with net cash inflows of euros and set cash infleres of Sanland francs. These
DJacko Ca is a JShawd MNC with net cash inflows of euros and set cash infleres of Sanland francs. These tHo CUTeSCH are highly negativety correlated in their movements against the dollar. Krinet Co is a ased MNC that bas the sam exposure as Jacko Co in these curreocies, except that its Sunland francs represent cash outflows. Which firm has a hugh exposure to exchange rate risk?O The fins have about the same level of exposure. Kriner CoO Neither firm has any exposure. Jacko Co
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