Question

When an enterprise has an unhedged receivable or payable denominated in a foreign currency and settlement of the obligation has not yet taken place that firm is said to have:

Q: Answer-&lt;p&gt;When an enterprise has an unhedged receivable or payable denominated in a foreign currency...

Unhedged payables are the instruments which are not safe from exchange rate fluctuations. Transaction exposure is the risk of loss from a change in exchange rates during the course of a business transaction.

A Transaction exposure

B Accounting exposure

C Infinite exposure

D Operating exposure

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When an enterprise has an unhedged receivable or payable denominated in a foreign currency and settlement of the obligation has not yet taken place that firm is said to have:

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