You have just purchased a large number of Italian bonds, and you reside in the United States. The variability in earnings that you might experience as the relationship between the euro and the U.S. dollar fluctuates is called
A) currency volatility risk.
B) international risk.
C) exchange rate risk.
D) fluctuation risk.
E) none of the above.
Answer: C
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Answer the following statement true (T) or false (F)