The sensitivity of "realized" domestic currency values of the firm's contractual cash flows denominated in foreign currency to unexpected changes in the exchange rate is . a. transaction exposure. b. translation exposure. c. economic exposure. d. none of the options

Transaction exposure is the sensitivity of realized domestic currency values of the firm's contractual cash flows denominated in foreign currencies to unexpected changes in exchange rates. Unlike economic exposure, transaction exposure is well-defined and short-term.

Explanation:

the earthquake in haiti was a magnitude of 7.0 according to the u.s geological survey yet the smaller earthquake in haiti killed more than 200,000 and left more than 1.2 million people homeless. the chile earthquake was a magnitude of 8.8 and 500 times more stronger but chile's earthquake only injured 712 people.