O a. If the Yen appreciates against the GBP, then the MNC will stand to make a loss on its GBP exposure. O b. If the Yen appreciates against the GBP, then the MNC will stand to make a gain on its GBP exposure. If the GBP appreciates against the Yen, then the MNC will stand to make a loss on its GBP exposure. O d. If the GBP appreciates against the Yen, then the MNC will stand to make a gain on its GBP exposure.
O a. If the Yen appreciates against the GBP, then the MNC will stand to make a loss on its GBP exposure. O b. If the Yen appreciates against the GBP, then the MNC will stand to make a gain on its GBP exposure. If the GBP appreciates against the Yen, then the MNC will stand to make a loss on its GBP exposure. O d. If the GBP appreciates against the Yen, then the MNC will stand to make a gain on its GBP exposure.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Please answer this quesiton thank you
Transcribed Image Text:A Japanese MNC, exports to, and imports from the UK. The MNC has accounts payable totaling GBP341 million, GBP-denominated debt of
GBP196 million and accounts receivable totaling GBP268 million. Which of the following statements is true on the MNC's GBP transaction
exposure?
If the Yen appreciates against the GBP, then the MNC will stand to make a loss on its GBP exposure.
a.
b. If the Yen appreciates against the GBP, then the MNC will stand to make a gain on its GBP exposure.
c. If the GBP appreciates against the Yen, then the MNC will stand to make a loss on its GBP exposure.
d. If the GBP appreciates against the Yen, then the MNC will stand to make a gain on its GBP exposure.
е.
More than one of these statements is true.
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