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Question 12 1.67 pts Assume that you attended a recent webinar which is about the foreign exchange exposure and hedging. During the webinar, some audience raised the following statements: i. Translation exposure often leads to cash flow exposure when accounts are liquidated. ii. Economic exposure is concerned with future cash flows already contracted for, while transaction exposure focuses on expected (not yet contracted for) future cash flows. iii. Transaction exposure refers to potential gains or losses on foreign transactions received or paid in foreign currency, which is easier to measure and manage compared to economic exposure. Which of the statements is/are correct about the foreign exchange exposure and hedging? O i and ii O ii and iii O None of the given statements is correcta Translation exposure often leads to cash flow exposure when accounts are liquidated ii. Economic exposure is concerned with future cash flows already contracted for, while transaction exposure focuses on expected (not yet contracted for) future cash flows. iii. Transaction exposure refers to potential gains or losses on foreign transactions received or paid in foreign currency, which is easier to measure and manage compared to economic exposure. Which of the statements is/are correct about the foreign exchange exposure and hedging? O i and ii O ii and iii None of the given statements is correct O i, ii and iii O i and

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