Which of the following statements is correct in regards to exchange...

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Which of the following statements is correct in regards to exchange rate risk of a firm importing goods?
(1) If home currency weakens, the firm incurs a loss.
(2) If home currency strengthens, the firm incurs a loss.
Select the correct answer from the options given below:

A. (1) Only

B. (2) Only

C. Both (1) and (2)

D. Neither (1) nor (2)

Answer: Option A

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