Economic exposure refers to a. the sensitivity of realized domestic currency values of the firm's contractual cash flows denominated in foreign currencies to unexpected exchange rate changes. b. the extent to which the value of the firm would be affected by unanticipated changes in exchange rate. c. the potential that the firm's consolidated financial statement can be affected by changes in exchange rates. ex post and ex ante currency exposures.

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6 October, 16:24

Economic exposure refers to a. the sensitivity of realized domestic currency values of the firm's contractual cash flows denominated in foreign currencies to unexpected exchange rate changes. b. the extent to which the value of the firm would be affected by unanticipated changes in exchange rate. c. the potential that the firm's consolidated financial statement can be affected by changes in exchange rates. ex post and ex ante currency exposures.

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Jaydon Cabrera · Answer 1

All are correct

Explanation:

Economic exposure is a type of foreign exchange exposure caused by the effect of unexpected currency fluctuations on a company's future cash flows, foreign investments, and earnings.

All three statements for Economic exposure in the text are related to exchange rate changes, in which (a) is about cash flow, (b) is value of the firm, and (c) is financial statement.