When does a firm face transaction exposure? What will be an ...

[jparksx]

When does a firm face transaction exposure?
 
  What will be an ideal response?

Question 2

A call option ________.
 
  A) is a privately traded currency vehicle available only through stockbrokers
  B) grants the right to buy a specified amount of foreign currency at a set price
  C) allows the holder to buy foreign exchange at the wholesale rate
  D) is another term for currency future

[Silverbeard98]

Answer to Question 1

A firm faces transaction exposure when the financial benefits and costs of an international transaction can be affected by exchange rate movements that occur after the firm is legally obligated to complete the transaction.

Answer to Question 2

B

[jparksx]

Thanks for the timely response, appreciate it

[bbburns21]

Excellent