A firm will receive $300,000 and pay $240,000 on one date. Net exposure is
A$540,000
B$60,000
C$300,000
D$240,000
Answer & Solution
Correct answer: B. $60,000
Netting offsets inflows against outflows in the same currency, leaving 300,000 minus 240,000 = 60,000 exposed.
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