(Choose 1 answer)
Suppose a U.S.-based MNC maintains a vacation home for employees in the British countryside and the local price of this property is always moving together with the pound price of the U.S. dollar. As a result,
A. (i) whenever the pound depreciates against the dollar, the local currency price of this property goes up by the same proportion.
B. (ii) the firm is not exposed to currency risk even if the pound-dollar exchange rate fluctuates randomly.
C. Both (i) and (ii)
D. None of these
Exit 37
