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NEW QUESTION: 1
Which of the following methods is designed to measure transaction exposure in terms of the maximum
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I. Measurement of currency variability.
II. Measurement of currency correlations.
III. Value at risk.
A. I, II, and III.
B. I only.
C. II only.
D. III only.
Answer: D
Explanation:
Choice "c" is correct. The value at risk method seeks to quantify the exposure of business to a one day
loss in the value of its positions in foreign currencies.
Choices "a", "b", and "d" are incorrect, per above Explanation: .
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