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

Transaction exposure

Explanation:

Transaction exposure is simply 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.

Transaction exposure shows the uncertainty level that is faced by a business that is involved in international trade. It is regarded as the risk that there'll be fluctuation in the exchange rates will when a firm undertakes a financial obligation.

answer a is correct answer

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