Assume a firmrsquos home currency is british pounds let the


Assume a firm’s home currency is British pounds. Let the current spot FX rate be 1.70 $/£ and the expected revenues be £500 per year. Assume that if the FX value of the pound changes to 1.80 $/£, the expected revenue in pounds would change to £750 per year. Compute the company’s revenue exposure to the US dollar.

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Financial Management: Assume a firmrsquos home currency is british pounds let the
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