If the European subsidiary of a U.S. firm has net exposed assets of €200,000, and the euro increases in value from $1.22/€ to $1.26/€ the U.S. firm has a translation:

A) gain of $8,000.
B) loss of $8,000.
C) gain of $252,000.
D) loss of €252,000.

Answer: A

Business

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